NASA Spends $21M on AT&T Telephone Services via Definitive Contract
Contract Overview
Contract Amount: $21,060,122 ($21.1M)
Contractor: AT&T Corp.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 1962-05-01
End Date: 2023-09-30
Contract Duration: 22,432 days
Daily Burn Rate: $939/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TELEPHONE SERVICE
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $21.1 million to AT&T CORP. for work described as: TELEPHONE SERVICE Key points: 1. Significant spending on essential communication services. 2. Sole incumbent provider, AT&T, dominates this contract. 3. Long contract duration raises questions about flexibility and cost-effectiveness. 4. Potential for cost savings through competitive bidding.
Value Assessment
Rating: fair
The total award amount is substantial. Without comparable contract data for similar telephone services across federal agencies, a precise pricing assessment is difficult. However, the lack of competition suggests potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to AT&T. This limits price discovery and negotiation leverage, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competition likely results in higher expenditures than a competitively bid contract would yield.
Public Impact
Essential communication infrastructure for NASA operations. Reliance on a single provider for critical services. Taxpayer funds allocated for telecommunication needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Potential for price escalation
Positive Signals
- Ensures continuity of essential communication services
- Established relationship with a major provider
Sector Analysis
Telephone services are a fundamental utility for government operations, supporting communication and data transfer. Spending benchmarks vary widely based on the scope and technology, but competitive procurement typically drives efficiency.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors.
Oversight & Accountability
The definitive contract nature suggests a long-term agreement. Oversight would focus on service delivery, adherence to terms, and any potential modifications or price adjustments over the contract's lifespan.
Related Government Programs
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source award
- Lack of transparency in pricing
- Potential for vendor lock-in
- Limited opportunity for technological upgrades
Tags
national-aeronautics-and-space-administr, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $21.1 million to AT&T CORP.. TELEPHONE SERVICE
Who is the contractor on this award?
The obligated recipient is AT&T CORP..
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $21.1 million.
What is the period of performance?
Start: 1962-05-01. End: 2023-09-30.
What is the current market rate for similar telephone services to assess value?
Determining the precise current market rate for similar telephone services is challenging without a competitive bidding process. However, industry benchmarks for enterprise-level telecommunication solutions can be referenced. A thorough market research report comparing AT&T's service offerings and pricing against competitors like Verizon or Lumen Technologies would be necessary to establish a fair market price.
What are the risks associated with a sole-source contract for essential services?
Sole-source contracts carry significant risks, including inflated pricing due to lack of competition, vendor lock-in, and reduced incentive for the vendor to innovate or improve service quality. For essential services like telephone, this can lead to long-term financial inefficiencies and potential vulnerabilities if the sole provider faces operational issues.
How effective is this contract in meeting NASA's evolving communication needs?
The effectiveness of this contract in meeting evolving needs is questionable given its non-competed nature and long duration. Without regular re-competition, there's less pressure on AT&T to adapt services to new technologies or changing NASA requirements. Periodic reviews and potential modifications would be crucial to ensure continued effectiveness.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: AT&T Inc.
Address: 1 AT&T WAY, BEDMINSTER, NJ, 07921
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,060,122
Exercised Options: $21,060,122
Current Obligation: $21,060,122
Actual Outlays: $546,826
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 1962-05-01
Current End Date: 2023-09-30
Potential End Date: 2023-09-30 00:00:00
Last Modified: 2024-09-06
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