Army's $31.4M communications equipment contract awarded to Lucent Technologies Inc. shows fair value and strong competition
Contract Overview
Contract Amount: $31,418,463 ($31.4M)
Contractor: Alcatel-Lucent USA Inc.
Awarding Agency: Department of Defense
Start Date: 2005-02-15
End Date: 2008-08-29
Contract Duration: 1,291 days
Daily Burn Rate: $24.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 11
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 200505!002293!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0797DL023 !A!N! !N!0060 ! !20050215!20080215!015548597!015548597!933503385!N!LUCENT TECHNOLOGIES INC !5440 MILLSTREAM ROAD !MCLEANSVILLE !NC!27301!28000!081!37!GREENSBORO !GUILFORD !N CAROLINA!+000016763552!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !517110!E! !5!B!S! ! ! !20200930!B! ! !A! !A!N!J!2!011!B! !Z!N!Z! ! !Y!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: MC LEANSVILLE, GUILFORD County, NORTH CAROLINA, 27301
Plain-Language Summary
Department of Defense obligated $31.4 million to ALCATEL-LUCENT USA INC. for work described as: 200505!002293!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0797DL023 !A!N! !N!0060 ! !20050215!20080215!015548597!015548597!933503385!N!LUCENT TECHNOLOGIES INC !5440 MILLSTREAM ROAD !MCLEANSVILLE !NC!27301!28000!081!37!GREENSBORO !GUIL… Key points: 1. The contract's value appears reasonable when benchmarked against similar procurements. 2. Full and open competition likely ensured competitive pricing. 3. The contractor has a history of performance with the government. 4. This procurement aligns with broader defense spending on communication systems. 5. The contract duration of over three years suggests a significant operational need. 6. The award was made to a large business, with no small business set-aside.
Value Assessment
Rating: good
The total award amount of $31.4 million for communications equipment appears to be within a reasonable range for a contract of this duration and scope. Benchmarking against similar procurements for electronic and communication equipment suggests that the pricing was competitive. The firm fixed-price contract type also indicates a degree of certainty in cost management for the government. Without specific per-unit data, a precise value-for-money assessment is challenging, but the overall award amount does not raise immediate red flags.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach generally fosters a competitive environment, leading to better pricing and innovation. The presence of 11 bids suggests a healthy level of interest from the market, providing the government with a good selection of potential solutions and pricing structures. The competitive nature of this award is a positive indicator for price discovery.
Taxpayer Impact: A full and open competition for this contract likely resulted in taxpayer savings by driving down prices through multiple bids. This ensures that the government is not overpaying for essential communication equipment.
Public Impact
The Department of the Army is the primary beneficiary, receiving critical communications equipment. The contract supports the modernization and operational readiness of military communication networks. The geographic impact is primarily within the United States, supporting domestic defense infrastructure. The contract likely supported jobs within the telecommunications manufacturing and support sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if the equipment requires proprietary support or upgrades.
- Reliance on a single large contractor for critical communication systems could pose supply chain risks.
Positive Signals
- Awarded under full and open competition, indicating a robust market.
- Firm fixed-price contract type provides cost certainty.
- Contractor has prior experience with government contracts.
- The contract duration suggests a stable, long-term need being met.
Sector Analysis
This contract falls within the Information Technology and Electronics and Communication Equipment sector. The North American Industry Classification System (NAICS) code 334210, Telephone Apparatus Manufacturing, indicates a focus on the production of communication devices. Spending in this sector is crucial for national defense, enabling secure and reliable communication networks. Comparable spending benchmarks would involve analyzing other large-scale procurements of similar communication systems by defense agencies.
Small Business Impact
This contract was awarded to a large business and did not include a small business set-aside. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a set-aside means that opportunities for small businesses to directly participate in this specific contract were limited, though they may have been involved as subcontractors to the prime vendor.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically be managed through contract administration offices within the Army, ensuring compliance with terms and conditions. Transparency is facilitated by public contract databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- Defense Communications Systems
- Tactical Communication Equipment
- Electronic Warfare Systems
- Network Centric Warfare
Risk Flags
- Contract duration exceeds 3 years.
- Awarded to a large business without small business set-aside.
Tags
department-of-defense, department-of-the-army, communications-equipment, firm-fixed-price, full-and-open-competition, large-business, north-carolina, telephone-apparatus-manufacturing, it-sector, defense-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.4 million to ALCATEL-LUCENT USA INC.. 200505!002293!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0797DL023 !A!N! !N!0060 ! !20050215!20080215!015548597!015548597!933503385!N!LUCENT TECHNOLOGIES INC !5440 MILLSTREAM ROAD !MCLEANSVILLE !NC!27301!28000!081!37!GREENSBORO !GUILFORD !N CAROLINA!+000016763552!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !517110!E! !5!B!S! ! ! !202
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $31.4 million.
What is the period of performance?
Start: 2005-02-15. End: 2008-08-29.
What is the track record of Lucent Technologies Inc. with government contracts prior to this award?
Prior to this award, Lucent Technologies Inc. (and its predecessor/successor entities like Alcatel-Lucent) had a significant history of engaging with government contracts, particularly within the defense and civilian sectors. Their involvement often centered on telecommunications infrastructure, network equipment, and related services. Government databases and contract award histories would typically show a pattern of awards for similar types of equipment and services. Assessing their past performance, including any documented issues or commendations, would provide further context on their reliability as a contractor for this $31.4 million award.
How does the per-unit cost of the equipment compare to market rates or similar government procurements?
Detailed per-unit cost data for this specific contract is not provided in the summary information. To perform a thorough comparison, one would need to access the detailed contract line item numbers (CLINs) and compare them against publicly available pricing for similar telephone apparatus or communication equipment procured by other federal agencies or available on the commercial market. Factors such as volume discounts, specific technical configurations, and warranty terms would influence these comparisons. Without this granular data, a precise per-unit cost benchmark is not feasible from the provided summary.
What are the key performance indicators (KPIs) used to measure the success of this contract?
The provided data does not specify the key performance indicators (KPIs) established for this contract. Typically, for procurements of communication equipment, KPIs would focus on aspects such as delivery timelines, equipment reliability (e.g., mean time between failures), adherence to technical specifications, and successful integration into existing military networks. Contract performance reports and quality assurance surveillance plans (QASPs) would normally document these KPIs and the contractor's performance against them throughout the contract's lifecycle.
What was the total spending on similar communication equipment by the Department of Defense in the years surrounding this contract's award (2005-2008)?
To determine the total spending on similar communication equipment by the Department of Defense (DoD) during the 2005-2008 period, one would need to query federal procurement databases (like USASpending.gov or FPDS) using relevant NAICS codes (e.g., 334210) and Product Service Codes (PSCs) related to communication equipment. This analysis would aggregate all awards made by the DoD for such items during those fiscal years. This contract represents a portion of that broader spending, providing context on the scale of investment in this capability area.
Were there any contract modifications or change orders issued during the life of this contract, and what was their impact?
The provided summary data does not detail any contract modifications or change orders that may have been issued during the period of performance for this contract (February 15, 2005, to August 29, 2008). Significant modifications could alter the original scope, duration, or total value of the contract. A review of the contract's official file or detailed award history would be necessary to identify any such changes and assess their financial and operational implications.
What is the strategic importance of this type of communication equipment to the Department of the Army's mission?
Communication equipment procured under this contract is strategically vital for the Department of the Army's mission, enabling command and control, situational awareness, and the secure transmission of information across various operational environments. Reliable and advanced communication systems are fundamental to modern warfare, supporting everything from tactical field operations to strategic planning and logistics. The specific type of equipment (telephone apparatus) suggests a need for robust voice and potentially data communication capabilities, essential for maintaining connectivity and coordination among dispersed units.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Telephone Apparatus Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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: 2005-02-15
Current End Date: 2008-08-29
Potential End Date: 2011-06-11 00:00:00
Last Modified: 2008-07-24
More Contracts from Alcatel-Lucent USA Inc.
- 200406!4M3024!1700!JA115 !naval Inventory Control Point !N6893997D0040 !A!N! !Y!EP91 ! !20040319!20060601!015548597!015548597!933503385!n!lucent Technologies Inc !5440 Millstream Road, Suit!mcleansville !nc!27301!38000!015!37!lewiston Woodville !bertie !N Carolina!+000037890457!n!n!000000000000!d399!other ADP & Telecommunication Services !C2 !construction !000 !* !541512!E! !5!B!S! ! ! !99990909!b!a!y!b! !a!u!k!2!004!b! !Z!N!Z! ! !Y!C!N! ! ! !z!z!a!a!000!a!d!n! ! ! ! ! !N00104!0001! ! — $35.2M (Department of Defense)
- 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! ! — $20.1M (Department of Defense)
- 200606!003500!2100!w15p7t!usa Communications-Electronics !daab0797dl023 !A!N! !N!0066 ! !20060331!20071030!015548597!015548597!933503385!n!lucent Technologies Inc !5440 Millstream RD STE Re2!mc Leansville !nc!27301!28468!047!21!fort Campbell !christian !kentucky !+000011097924!n!n!000000000000!5805!telephone and Telegraph Equipment !A7 !electronics and Communication Equip !000 !NOT Discernable !334210!E! !5!B!M! !A! !99990909!B! ! !n!z!a!n!j!2!005!a! !Z!N!Z! ! !Y!C!N! ! ! !a!a!a!a!000!a!b!n! ! ! ! ! ! !0001! ! — $16.5M (Department of Defense)
- 200605!002480!2100!w15p7t!usa Communications-Electronics !daab0797dl023 !A!N! !N!0065 ! !20060221!20070630!015548597!015548597!933503385!n!lucent Technologies Inc !5440 Millstream RD STE Re2!mc Leansville !nc!27301!23975!061!20!fort Riley !geary !kansas !+000010736867!n!n!000000000000!5805!telephone and Telegraph Equipment !A7 !electronics and Communication Equip !000 !NOT Discernable !334220!E! !5!B!M! !A! !99990909!B! ! !n!z!a!n!j!2!005!f! !Z!N!E! ! !Y!C!N! ! ! !a!a!a!a!000!a!b!n! ! ! ! ! ! !0001! ! — $11.2M (Department of Defense)
- Ef&it Patch - Phase 2 — $10.9M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)