WHAT IS THIS?

This is a contract between the VA (Department of Veterans Affairs) and AT&T Enterprises, LLC, where AT&T will provide data network services, meaning the internet and communications connections that keep VA systems running across the country. The contract covers a six-year period and is worth up to $1.3 billion.

WHY WAS THIS FUNDED?

The VA operates one of the largest healthcare and benefits systems in the United States and requires reliable, secure network infrastructure to function. Additional program information is not available about the specific legal authority behind this particular award.

WHAT PUBLIC PROBLEM IS IT TRYING TO SOLVE?

The VA serves millions of veterans and needs a fast, secure data network so that medical records, benefits processing, and internal communications can work properly across hundreds of facilities nationwide. Without reliable network services, the VA could not effectively deliver healthcare and benefits to veterans.

WHO BENEFITS?

Veterans across the country benefit because their doctors, nurses, and benefits staff depend on this network to access records and process claims. VA employees at hospitals, clinics, and regional offices also rely on these services to do their jobs every day.

WHAT ARE THE RISKS?

A single large contract with one carrier creates some risk if AT&T experiences outages or fails to meet performance standards, since the VA would have limited alternatives already in place. Oversight of a $1.3 billion, multi-year contract also requires careful monitoring to ensure taxpayers receive the services they are paying for.

WHAT HAPPENS IF FUNDING IS REMOVED?

If this contract were cancelled, VA facilities could lose the internet and data connections needed to access patient records, process benefits, and communicate internally. Disruptions to those services could delay veterans' medical care and benefits payments.

ARGUMENTS FOR

• •A single, large contract with an established carrier like AT&T can provide consistent, reliable network service across all VA facilities rather than patching together many smaller, less coordinated providers.
• •Centralizing network services under one contract can reduce administrative overhead and potentially lower the overall cost per connection compared to managing dozens of separate agreements.
• •A secure, high-capacity network is essential for protecting sensitive veteran health and benefits data from cyber threats, and a major carrier has significant resources to invest in security.

ARGUMENTS AGAINST

• •Awarding a $1.3 billion contract to a single company reduces competition and may limit the VA's ability to switch providers if service quality declines or better options emerge.
• •The contract type is listed as unknown, which makes it harder for the public and oversight bodies to evaluate how costs are controlled and whether the government is getting a fair price.
• •Long-term, large contracts can become outdated as technology changes, potentially leaving the VA locked into services that do not reflect newer, more cost-effective networking options.