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MarkNeuhausen's avatar

As someone with ~20 years working as a government contractor, it is likely that every major service provider has significant contracts with ICE. Typically, government contracts go to the lowest bidder, and margins are poorer than commercial work. I know some of this is fallacious as the allocation of fixed (and resulting marginal costs) are very subjective. Still, even with a firm fixed price contract (typically most risk to the contractor, also highest margin) are capped at 15%, with other contract types having lower caps. The government is supposed to perform audits to ensure that the actual fee is not excessive (not sure that is still done). If one wants to rationalize, while AT&T has an ICE contract (and it would not surprise me if more service providers do not have ICE contracts), AT&T is likely getting less revenue and profit from ICE than if they could use that capacity elsewhere.

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