State Department adds $23.2M to AT&T BPA for telecom services, extending contract duration

Contract Overview

Contract Amount: $23,200,000 ($23.2M)

Contractor: NEW Cingular Wireless Services, Inc.

Awarding Agency: Department of State

Start Date: 2015-01-28

End Date: 2016-04-22

Contract Duration: 450 days

Daily Burn Rate: $51.6K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ADDING MONEY TO AT&T BPA

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22153

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $23.2 million to NEW CINGULAR WIRELESS SERVICES, INC. for work described as: ADDING MONEY TO AT&T BPA Key points: 1. Contract value increased significantly, indicating expanded or ongoing need for telecommunications services. 2. Competition under SAP suggests a streamlined procurement process, potentially impacting price discovery. 3. The firm-fixed-price structure shifts cost risk to the contractor. 4. Contract duration extended, requiring ongoing monitoring of performance and value. 5. The award to New Cingular Wireless (AT&T) suggests a reliance on established providers. 6. NAICS code 517911 points to a focus on telecommunications resellers.

Value Assessment

Rating: good

The original contract value is not provided, making a direct comparison difficult. However, the addition of $23.2 million suggests a substantial increase in the scope or duration of services. Benchmarking against similar telecommunications reseller contracts would be necessary to fully assess value for money. The firm-fixed-price nature of the award helps control costs for the government, provided the scope of work is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Small Acquisition Procedures), which is a method for acquiring goods and services valued below certain thresholds. While this indicates competition, the specific number of bidders and the details of the competition are not provided. SAP can lead to quicker awards but may not always yield the most competitive pricing compared to full and open competition for larger contracts.

Taxpayer Impact: Competition under SAP generally aims for efficiency. The extent to which this competition drove down prices for taxpayers depends on the number of responsive bids received and the negotiation process.

Public Impact

Federal agencies, particularly the Department of State, benefit from reliable telecommunications infrastructure. Services delivered likely include voice, data, and potentially mobile communication services. The geographic impact is likely nationwide, supporting various State Department operations. Workforce implications are minimal for the government, as the service is provided by a contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the added funds are not tied to clearly defined new requirements.
Reliance on a single large provider could limit future flexibility and negotiation power.

Positive Signals

Firm-fixed-price contract limits cost overruns for the government.
Award to an established provider like AT&T suggests a degree of reliability and existing infrastructure.
Competition under SAP, while less formal, still implies a process to select a vendor.

Sector Analysis

The telecommunications services sector is vast and critical for government operations. This contract falls under the Telecommunications Resellers category (NAICS 517911), which involves companies that resell telecommunications services. Spending in this area is consistent with the government's need for robust communication networks. Comparable spending benchmarks would typically look at the total IT and telecommunications budgets of agencies like the Department of State.

Small Business Impact

There is no indication that this contract involved small business set-asides. The award to New Cingular Wireless (AT&T) suggests a large prime contractor. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided data. The focus on a large provider might limit direct opportunities for small businesses in this specific award.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and program managers within the Department of State. Accountability is established through the firm-fixed-price contract terms and performance expectations. Transparency is facilitated by contract award databases, though detailed performance metrics are often internal.

Related Government Programs

General Services Administration (GSA) Schedules for telecommunications
Other agency-specific telecommunications contracts
Network infrastructure services contracts

Risk Flags

Limited competition indicated by single bidder
Potential for price increases due to lack of competition
Contract duration extension requires ongoing performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $23.2 million to NEW CINGULAR WIRELESS SERVICES, INC.. ADDING MONEY TO AT&T BPA

Who is the contractor on this award?

The obligated recipient is NEW CINGULAR WIRELESS SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $23.2 million.

What is the period of performance?

Start: 2015-01-28. End: 2016-04-22.

What was the original value of the AT&T BPA before the $23.2 million addition?

The provided data does not specify the original value of the Basic Ordering Agreement (BPA) with AT&T. It only indicates that $23.2 million was added to it. To fully assess the contract's growth and significance, knowing the initial award amount would be crucial. This information would allow for a calculation of the percentage increase and provide context on how much the scope or duration of services has expanded over time. Without this baseline, it's challenging to determine if this addition represents a minor adjustment or a substantial expansion of the original agreement.

How many bids were received for this BPA call under SAP?

The provided data indicates the contract was 'COMPETED UNDER SAP' (Small Acquisition Procedures) and that there was '1' bidder. This suggests that while the procurement method allowed for competition, only one responsive bid was received or considered. Small Acquisition Procedures are designed for efficiency and can be used when the anticipated value falls below certain thresholds. However, a single bidder scenario, even under SAP, raises questions about the robustness of the competition and whether the government received the best possible pricing and terms. Further investigation into the solicitation process and market research conducted would be needed to understand why only one bid was submitted.

What specific telecommunications services are covered under this BPA call?

The NAICS code 517911, 'Telecommunications Resellers,' indicates that the services provided likely involve the resale of telecommunications services rather than the direct provision of infrastructure. This could encompass a range of services such as voice over IP (VoIP), traditional phone lines, data transmission services, mobile phone plans, and potentially managed network services. The specific details of the services would be outlined in the BPA's statement of work and subsequent BPA calls. Given the Department of State's global operations, these services are critical for maintaining secure and reliable communication channels for diplomatic and operational activities.

What is the typical duration and value range for similar telecommunications reseller contracts awarded by the Department of State?

Telecommunications reseller contracts awarded by agencies like the Department of State can vary significantly in duration and value, often depending on the specific services required and the scale of operations they support. Basic Ordering Agreements (BOAs) or Blanket Purchase Agreements (BPAs) are often used to establish pre-negotiated terms and pricing for recurring needs, allowing for task orders to be issued as required. Typical durations for such agreements can range from one to five years, with potential for option periods. Values can range from tens of thousands to tens of millions of dollars, as seen with this $23.2 million addition. Benchmarking against other government-wide contracts or agency-specific procurements for similar services would provide a more precise comparison.

What are the potential risks associated with extending a BPA with a single bidder?

Extending a BPA, especially if competition is limited to a single bidder for subsequent calls, presents several risks. Firstly, it can lead to suboptimal pricing as the lack of competitive pressure may reduce incentives for the contractor to offer the lowest possible rates. Secondly, it can stifle innovation, as the incumbent may face less pressure to adopt new technologies or improve service offerings. Thirdly, there's a risk of vendor lock-in, making it difficult and costly to switch providers in the future. Finally, a single-bidder scenario might indicate potential issues with market research, solicitation outreach, or barriers to entry for other qualified vendors, which could suggest a less-than-optimal procurement outcome for the government.

Industry Classification

NAICS: Information › Other Telecommunications › Telecommunications Resellers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AT&T Inc. (UEI: 108024050)

Address: 7277 164TH AVE NE, REDMOND, WA, 98052

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,200,000

Exercised Options: $23,200,000

Current Obligation: $23,200,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: SAQMMA11A0099

IDV Type: BPA

Timeline