DoD Awards $11.15M for Telephone Equipment, Lucent Technologies Wins Contract

Contract Overview

Contract Amount: $11,154,039 ($11.2M)

Contractor: Alcatel-Lucent USA Inc.

Awarding Agency: Department of Defense

Start Date: 2006-02-21

End Date: 2009-09-30

Contract Duration: 1,317 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 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! !

Place of Performance

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

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $11.2 million to ALCATEL-LUCENT USA INC. for work described as: 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 !GEAR… Key points: 1. The Department of Defense awarded a $11.15 million contract for telephone and telegraph equipment. 2. Lucent Technologies Inc. secured the contract, indicating potential consolidation or specific capabilities. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The sector is IT/Electronics, a critical area for military communications and operations.

Value Assessment

Rating: fair

The contract value of $11.15 million for telephone and telegraph equipment appears within a reasonable range for such procurements, though a direct comparison is difficult without more specific technical details. The duration of the contract (over 3 years) suggests a substantial need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, which typically allows for the widest range of potential bidders and can lead to more competitive pricing. The number of offers received (5) further supports the idea of a competitive process.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving a fair price for the required equipment, as multiple companies vied for the contract.

Public Impact

Ensures critical communication infrastructure for military personnel. Supports the operational readiness of the U.S. Army. Potential for technological advancements in military communication systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Contract duration is over 3 years, potentially locking in pricing.
  • Limited information on specific equipment, making value assessment harder.
  • Sole awardee for this specific contract, though competition was open.

Positive Signals

  • Awarded under full and open competition.
  • Received multiple offers (5), indicating market interest.
  • Firm Fixed Price contract type helps control costs.

Sector Analysis

This contract falls within the Information Technology and Electronics sector, specifically related to telecommunications equipment. Spending in this area is crucial for maintaining secure and reliable communication networks for defense operations. Benchmarks for similar contracts would depend heavily on the specific type and quantity of equipment.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or prime contractors in this award. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The contract was awarded by the Department of the Army, part of the Department of Defense. Standard DoD oversight mechanisms would apply, including contract performance monitoring and financial audits to ensure accountability.

Related Government Programs

  • Telephone Apparatus Manufacturing
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Contract duration exceeds 3 years.
  • Limited technical details provided for the equipment.
  • Potential for vendor lock-in if technology becomes proprietary.
  • No explicit mention of small business participation.

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 $11.2 million to ALCATEL-LUCENT USA INC.. 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! !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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $11.2 million.

What is the period of performance?

Start: 2006-02-21. End: 2009-09-30.

What specific types of telephone and telegraph equipment were procured under this contract, and how do their features align with current military communication needs?

The specific types of telephone and telegraph equipment are not detailed in the provided data, which only lists the general category 'TELEPHONE AND TELEGRAPH EQUIPMENT'. Understanding the exact specifications, such as encryption capabilities, ruggedization, or network compatibility, is crucial for assessing if the procured items meet the evolving and stringent requirements of modern military communications and if they represent a value-driven purchase.

Given the contract's duration and value, what is the projected cost per unit or per year, and how does this compare to industry benchmarks for similar telecommunications equipment?

With a total value of $11.15 million and a duration of approximately 3.6 years (from Feb 2006 to Sep 2009), the average annual spending is roughly $3.1 million. However, without knowing the quantity of equipment, a precise per-unit cost cannot be determined. Comparing this to industry benchmarks is challenging without specific equipment details, but it suggests a significant investment in communication infrastructure.

What was the rationale for selecting Lucent Technologies Inc. as the awardee, and were there any performance concerns or successes from previous contracts with this vendor?

The data indicates the contract was awarded under 'FULL AND OPEN COMPETITION' with 5 offers received, suggesting Lucent Technologies Inc. likely provided the best value proposition based on the evaluation criteria. Specific details on the selection rationale or past performance are not provided, but the award implies they met the government's requirements effectively at the time of bidding.

Industry Classification

NAICS: ManufacturingCommunications Equipment ManufacturingTelephone Apparatus Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 5

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: 2006-02-21

Current End Date: 2009-09-30

Potential End Date: 2009-09-30 00:00:00

Last Modified: 2010-03-13

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