Treasury's $31.1M AT&T Contract for MPLS Circuits Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $31,144,420 ($31.1M)
Contractor: AT&T Enterprises, LLC
Awarding Agency: Department of the Treasury
Start Date: 2010-12-28
End Date: 2011-09-30
Contract Duration: 276 days
Daily Burn Rate: $112.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TNET CONTRACT MPLS CIRCUITS&TNET SERVI
Place of Performance
Location: VIENNA, FAIRFAX County, VIRGINIA, 22182
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $31.1 million to AT&T ENTERPRISES, LLC for work described as: TNET CONTRACT MPLS CIRCUITS&TNET SERVI Key points: 1. Contract Value: $31.14 million over 276 days. 2. Competition: Awarded under full and open competition. 3. Risk: Low risk due to fixed-price contract and established provider. 4. Sector: Telecommunications services for IRS operations.
Value Assessment
Rating: good
The contract price appears reasonable given the short duration and the nature of telecommunications services. Benchmarking against similar large-scale MPLS circuit contracts would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process that likely drove price discovery. This method generally leads to fair market pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing competitive rates for essential services.
Public Impact
Ensures critical network connectivity for the IRS. Supports tax processing and taxpayer services. Leverages established telecommunications infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition utilized
- Firm fixed price contract type
- Established provider with relevant experience
Sector Analysis
This contract falls within the IT and telecommunications sector, specifically wired telecommunications carriers. Spending benchmarks for similar government-wide telecommunications contracts can vary significantly based on service level agreements and geographic coverage.
Small Business Impact
There is no indication in the provided data that small businesses were involved in this specific contract award, either as prime contractors or subcontractors.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a standard procurement process. Further oversight would involve monitoring contract performance and adherence to service level agreements.
Related Government Programs
- Wired Telecommunications Carriers
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Tags
wired-telecommunications-carriers, department-of-the-treasury, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $31.1 million to AT&T ENTERPRISES, LLC. TNET CONTRACT MPLS CIRCUITS&TNET SERVI
Who is the contractor on this award?
The obligated recipient is AT&T ENTERPRISES, LLC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $31.1 million.
What is the period of performance?
Start: 2010-12-28. End: 2011-09-30.
What was the specific scope of services included in these MPLS circuits?
The data indicates 'TNET CONTRACT MPLS CIRCUITS&TNET SERVI,' suggesting the contract was for Multiprotocol Label Switching (MPLS) circuits and related network services. The exact scope would detail bandwidth, latency guarantees, geographic coverage, and any associated support or maintenance agreements provided by AT&T.
How does the price per circuit compare to industry benchmarks for similar government contracts?
Without specific details on the number of circuits, bandwidth, and service level agreements, a direct comparison to industry benchmarks is challenging. However, the total value of $31.14 million over approximately 9 months suggests a significant deployment, and the firm fixed-price nature provides cost certainty for the IRS.
What is the potential impact of relying on a single provider like AT&T for these critical services?
While AT&T is a major provider, reliance on a single vendor for critical infrastructure can pose risks related to service disruptions, price increases upon renewal, or limited flexibility. However, the initial award under full and open competition mitigates some of these concerns by ensuring a competitive starting point.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: AT&T Inc. (UEI: 108024050)
Address: 1900 GALLOWS ROAD, VIENNA, VA, 11
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $31,144,420
Exercised Options: $31,144,420
Current Obligation: $31,144,420
Parent Contract
Parent Award PIID: GS00T07NSD0007
IDV Type: IDC
Timeline
Start Date: 2010-12-28
Current End Date: 2011-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2014-12-01
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