AT&T Mobility Secures $267M Contract for US Government Wireless Services

AT&T Secures $267M Contract for US Government Wireless Services

AT&T Mobility has landed a substantial $267 million deal to provide commercial wireless services to the US government, with a potential value of $2.67 billion over the next ten years. The contract encompasses coverage across all 50 states, US territories, and international travel for military and civilian personnel, including various wireless technologies and related operations. The agreement, awarded by the Naval Supply Systems Command Fleet Logistics Center San Diego, is slated for potential completion by May 2034.

Key Takeaways

• AT&T Mobility clinches a $267 million contract for commercial wireless mobility services.
• The contract comprises wireless technologies, software, hardware, and equipment.
• Encompasses usage in all 50 US states, territories, and international travel for military/civilians.
• Features a 1-year base period with 9 one-year options, with a potential total value of $2.67 billion.
• Work is expected to be concluded by May 2025 (or May 2034 if all options are exercised).

Analysis

AT&T Mobility's $267 million contract with the US government for wireless services is poised to have a notable impact on the telecom industry, particularly affecting competitors like Verizon and T-Mobile. With the potential total value reaching $2.67 billion over the next decade, this deal could prompt these rivals to actively pursue similar contracts or make substantial investments in their infrastructure to retain competitiveness. Additionally, this agreement will influence tech companies providing software, hardware, and equipment, as AT&T may ramp up procurements to fulfill contract obligations. For the government, this collaboration ensures nationwide coverage for military and civilian personnel, elevating communication capabilities. However, the dependence on a single provider may pose cybersecurity risks, necessitating future considerations for diversification. Moreover, this deal underscores the expanding role of telecom companies in government operations, possibly opening up a new revenue stream for AT&T, which could impact its strategic focus.

Did You Know?

• ID/IQ Contract: An Indefinite Delivery/Indefinite Quantity (ID/IQ) contract is utilized by the US government to procure goods and services when precise quantities and delivery schedules are uncertain, allowing the government to place multiple orders with a single contractor during the contract period, thus enhancing efficiency.
• Firm-Fixed-Price Contract: This type of contract renders the price non-adjustable based on the contractor's costs, signifying that the contractor bears the risk for any cost overruns, and the government pays the contractor the agreed-upon price regardless of the contractor's expenses.
• Base Period and Options: The contract has a 1-year base period with nine one-year options, signifying that it will endure for at least one year, with the potential to be extended for up to nine additional one-year periods. If all options are exercised, the contract will span a total of ten years.