VA awards $35.2M for Wired Telecommunications Carriers, with AT&T Corp. as the contractor

Contract Overview

Contract Amount: $35,253,533 ($35.3M)

Contractor: AT&T Corp.,

Awarding Agency: Department of Veterans Affairs

Start Date: 2015-11-02

End Date: 2023-05-12

Contract Duration: 2,748 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF_NATIONAL LOCAL EXCHANGE CARRIER SERVICES_ LEC-TAC-16-26013

Place of Performance

Location: HOFFMAN ESTATES, COOK County, ILLINOIS, 60192

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $35.3 million to AT&T CORP., for work described as: IGF::OT::IGF_NATIONAL LOCAL EXCHANGE CARRIER SERVICES_ LEC-TAC-16-26013 Key points: 1. The contract value is substantial at $35.2 million. 2. AT&T Corp. is the sole contractor identified. 3. The contract duration is long, spanning over 7 years. 4. The sector is Wired Telecommunications Carriers, a critical infrastructure component.

Value Assessment

Rating: fair

The contract value of $35.2 million over nearly 7.5 years suggests a significant investment. Benchmarking against similar large-scale telecommunications contracts is difficult without more granular data on services provided, but the duration implies a need for consistent, reliable service.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. However, the data only shows one awardee (AT&T Corp.), suggesting that either only one bid was received or AT&T was the most advantageous offer.

Taxpayer Impact: The use of full and open competition is generally positive for taxpayer value, as it aims to secure the best prices through market forces.

Public Impact

Ensures continued communication infrastructure for the Department of Veterans Affairs. Supports critical VA operations and services for veterans. Long-term contract may offer stability but also potential for price increases over time. Reliance on a single provider for a significant duration warrants monitoring.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2748 days)
Single awardee identified (AT&T Corp.)

Positive Signals

Full and open competition utilized
Significant contract value indicates essential service

Sector Analysis

The Wired Telecommunications Carriers sector (NAICS 517110) encompasses services like local and long-distance phone, internet, and private line services. Spending in this sector by federal agencies is substantial, supporting agency operations and national infrastructure.

Small Business Impact

The data indicates this contract was not set aside for small businesses and does not provide specific information on small business participation. Large telecommunications contracts often involve significant infrastructure and resources typically held by larger corporations.

Oversight & Accountability

The contract was awarded by the Department of Veterans Affairs, which has its own oversight mechanisms. The long duration necessitates ongoing monitoring to ensure continued value and performance, potentially involving program management reviews.

Related Government Programs

Wired Telecommunications Carriers
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Long contract duration
Single awardee identified
Potential for price escalation
Lack of granular service detail

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $35.3 million to AT&T CORP.,. IGF::OT::IGF_NATIONAL LOCAL EXCHANGE CARRIER SERVICES_ LEC-TAC-16-26013

Who is the contractor on this award?

The obligated recipient is AT&T CORP.,.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $35.3 million.

What is the period of performance?

Start: 2015-11-02. End: 2023-05-12.

What specific telecommunications services are included under this contract, and how do their costs compare to market rates for similar services over the contract's lifespan?

The provided data does not detail the specific telecommunications services procured. To assess value, a breakdown of services (e.g., broadband, voice lines, dedicated circuits) and their associated unit costs would be necessary. Comparing these against prevailing market rates for similar service levels and durations would reveal if the $35.2 million award represents a competitive price or if potential savings were missed.

Given the long contract duration and single identified awardee, what mechanisms are in place to mitigate risks of price escalation or service degradation over time?

The long duration (nearly 7.5 years) and the identification of a single awardee (AT&T Corp.) raise concerns about potential price escalation and service stagnation. Robust contract management, including regular performance reviews, service level agreement (SLA) enforcement, and potential price adjustment clauses tied to objective market indices, are crucial. The VA should actively monitor these aspects to ensure continued value and service quality.

How effectively does this contract support the VA's mission, and are there opportunities for leveraging newer technologies or more competitive solutions in the future?

This contract is critical for maintaining the VA's communication infrastructure, directly supporting its mission to serve veterans. While essential, the long-term nature and reliance on a single provider may limit agility. Future strategies should explore opportunities for technology refreshes, potentially through follow-on contracts or task orders, that incorporate emerging technologies and foster renewed competition to ensure optimal support and cost-effectiveness.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AT&T Inc.

Address: 2001 LAKEWOOD BLVD STE 6L544, HOFFMAN ESTATES, IL, 60192

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,027,116

Exercised Options: $35,253,533

Current Obligation: $35,253,533

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11815D0011

IDV Type: IDC

Timeline