DoD Awards $20.1M for Communications Equipment, Lucent Technologies Inc. Secures Contract

Contract Overview

Contract Amount: $20,109,186 ($20.1M)

Contractor: Alcatel-Lucent USA Inc.

Awarding Agency: Department of Defense

Start Date: 2004-07-22

End Date: 2011-09-22

Contract Duration: 2,618 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200410!007447!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0797DL023 !A!N! !N!0058 ! !20040722!20070630!015548597!015548597!933503385!N!LUCENT TECHNOLOGIES INC !5440 MILLSTREAM ROAD, SUIT!MCLEANSVILLE !NC!27301!28000!081!37!GREENSBORO !GUILFORD !N CAROLINA!+000004642839!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334220!E! !5!B!M! !A! !99990909!B! ! !A! !A!U!J!2!011!B! !Z!N!Z! ! !Y!C!N! ! ! !A!C!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: MC LEANSVILLE, GUILFORD County, NORTH CAROLINA, 27301

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to ALCATEL-LUCENT USA INC. for work described as: 200410!007447!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0797DL023 !A!N! !N!0058 ! !20040722!20070630!015548597!015548597!933503385!N!LUCENT TECHNOLOGIES INC !5440 MILLSTREAM ROAD, SUIT!MCLEANSVILLE !NC!27301!28000!081!37!GREENSBORO !GUIL… Key points: 1. Contract awarded to Lucent Technologies Inc. for miscellaneous communication equipment. 2. The contract value is $20.1 million over a period of 2618 days. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The sector is Defense, with a focus on electronics and communication equipment.

Value Assessment

Rating: fair

The contract value of $20.1 million for communication equipment appears reasonable given the duration and scope. Benchmarking against similar contracts for specialized electronics would provide a clearer assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price for the communication equipment procured.

Public Impact

Ensures operational readiness for the Department of Defense by providing essential communication equipment. Supports a major telecommunications provider, potentially impacting employment and innovation in the sector. The long contract duration suggests a sustained need for these communication capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Long contract duration (2618 days) may lead to price escalation or technology obsolescence.
  • Reliance on a single vendor for a significant period could limit future flexibility.
  • Specific details on the equipment and its criticality are not provided, hindering risk assessment.

Positive Signals

  • Awarded under full and open competition, indicating a robust procurement process.
  • Firm Fixed Price contract type helps control costs and provides budget certainty.
  • Contract supports a well-established company in the telecommunications industry.

Sector Analysis

This contract falls within the Defense sector, specifically for electronics and communication equipment. Spending in this area is critical for national security and military operations, with benchmarks varying widely based on technological sophistication and quantity.

Small Business Impact

While the primary awardee is a large corporation, the contract may indirectly benefit small businesses through subcontracting opportunities. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency, indicating established oversight. However, the long duration warrants periodic reviews to ensure continued value and performance.

Related Government Programs

  • Telephone Apparatus Manufacturing
  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Potential for technology obsolescence due to long contract duration.
  • Risk of cost overruns if not managed tightly.
  • Limited visibility into specific equipment details and performance.
  • Dependence on a single contractor for an extended period.

Tags

telephone-apparatus-manufacturing, department-of-defense, nc, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to ALCATEL-LUCENT USA INC.. 200410!007447!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0797DL023 !A!N! !N!0058 ! !20040722!20070630!015548597!015548597!933503385!N!LUCENT TECHNOLOGIES INC !5440 MILLSTREAM ROAD, SUIT!MCLEANSVILLE !NC!27301!28000!081!37!GREENSBORO !GUILFORD !N CAROLINA!+000004642839!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334220!E! !5!B!M! !A! !999

Who is the contractor on this award?

The obligated recipient is ALCATEL-LUCENT USA INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $20.1 million.

What is the period of performance?

Start: 2004-07-22. End: 2011-09-22.

What specific type of communication equipment was procured, and how does its technology compare to current market offerings?

The data indicates 'MISCELLANEOUS COMMUNICATION EQUIPMENT' and 'ELECTRONICS AND COMMUNICATION EQUIP'. Without more specific details, it's difficult to assess the technology's current relevance. The contract's start date in 2004 suggests the equipment might be nearing or past its technological prime, potentially impacting its effectiveness and requiring future upgrades.

What were the key performance metrics and evaluation criteria used during the full and open competition process?

The provided data does not detail the specific performance metrics or evaluation criteria used in the competition. Full and open competition implies a structured process, but understanding the weighting of factors like technical capability, past performance, and price is crucial for assessing the selection's effectiveness and ensuring the best value was obtained.

How does the total contract value of $20.1 million align with the expected lifespan and operational needs of the procured communication equipment?

The contract value of $20.1 million spans over 2618 days (approximately 7 years). This suggests a significant investment in communication infrastructure. Assessing alignment requires understanding the equipment's expected lifespan, maintenance costs, and the evolving operational requirements of the Department of Defense to determine if this represents a cost-effective solution.

Industry Classification

NAICS: ManufacturingCommunications Equipment ManufacturingTelephone Apparatus Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Alcatel Lucent (UEI: 275127975)

Address: 5440 MILLSTREAM RD STE RE2P18, MC LEANSVILLE, NC, 09

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAB0797DL023

IDV Type: IDC

Timeline

Start Date: 2004-07-22

Current End Date: 2011-09-22

Potential End Date: 2011-09-22 00:00:00

Last Modified: 2010-09-22

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