GAO awards $25.9M task order to Lumen for network services, extending contract through 2026

Contract Overview

Contract Amount: $25,875,639 ($25.9M)

Contractor: Lumen Technologies Government Solutions, Inc.

Awarding Agency: Government Accountability Office

Start Date: 2023-08-01

End Date: 2026-07-31

Contract Duration: 1,095 days

Daily Burn Rate: $23.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: IT

Official Description: THE PURPOSE OF THIS ACTION IS TO ESTABLISH A TASK ORDER AGAINST GSAS ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) CONTRACT WITH A BASE AND EIGHT (8) OPTION PERIODS, FOR GAO NETWORK/DATA, VOICE AND MANAGED SERVICES.

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80202

State: Colorado Government Spending

Plain-Language Summary

Government Accountability Office obligated $25.9 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. for work described as: THE PURPOSE OF THIS ACTION IS TO ESTABLISH A TASK ORDER AGAINST GSAS ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) CONTRACT WITH A BASE AND EIGHT (8) OPTION PERIODS, FOR GAO NETWORK/DATA, VOICE AND MANAGED SERVICES. Key points: 1. Task order leverages existing GSA EIS contract, potentially reducing administrative burden. 2. Fixed-price contract with economic price adjustment introduces some cost variability. 3. Single award delivery order suggests focused competition or specific service needs. 4. Contract duration of 1095 days provides a medium-term service commitment. 5. Services include network/data, voice, and managed services, critical for agency operations. 6. Wired Telecommunications Carriers NAICS code indicates a mature and competitive market.

Value Assessment

Rating: good

The total award amount of $25.9 million over three years for network and telecommunications services appears reasonable given the scope. Benchmarking against similar GSA EIS task orders for comparable services would provide a more precise value assessment. The fixed-price with economic price adjustment structure aims to balance cost certainty with market fluctuations, which is a common approach for IT services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was issued under GSA's Enterprise Infrastructure Solutions (EIS) contract, which itself was awarded through full and open competition. While the specific competition for this particular task order is not detailed, the underlying EIS contract aimed for broad market participation. The number of bidders for this specific task order is not provided, but the existence of the EIS GWAC implies a competitive environment for its underlying contracts.

Taxpayer Impact: Leveraging a competitively awarded GWAC like EIS generally benefits taxpayers by ensuring a baseline level of competition and fair pricing for the services procured.

Public Impact

The Government Accountability Office (GAO) is the primary beneficiary, receiving essential network and telecommunications services. Services include data, voice, and managed network support, crucial for GAO's investigative and auditing functions. The geographic impact is likely national, supporting GAO's nationwide operations. Workforce implications are minimal as this is a service contract, not a direct hiring action.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases due to economic price adjustment clause.
Reliance on a single vendor for critical network infrastructure.
Scope creep could lead to cost overruns if not managed tightly.

Positive Signals

Leverages existing GSA EIS contract, streamlining procurement.
Award to established provider with experience in government contracts.
Clear service delivery period with defined end date.

Sector Analysis

This contract falls within the telecommunications services sector, specifically focusing on enterprise network infrastructure and managed services. The GSA EIS GWAC is a significant vehicle for federal agencies to procure such services, representing a substantial portion of federal IT spending. The market for wired telecommunications carriers is mature, with several large providers competing for government contracts.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Lumen Technologies Government Solutions, Inc. is a large business, the underlying GSA EIS contract likely includes provisions for small business subcontracting, which would need to be monitored to ensure compliance and opportunities for smaller firms within the broader telecommunications ecosystem.

Oversight & Accountability

Oversight is primarily handled by the Government Accountability Office (GAO) itself, as the contracting agency. The GSA oversees the Enterprise Infrastructure Solutions (EIS) GWAC. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would typically fall under the GAO's OIG for any issues related to this specific task order.

Related Government Programs

GSA Enterprise Infrastructure Solutions (EIS)
Federal Telecommunications Services
Government IT Infrastructure Contracts

Risk Flags

Potential for cost increases due to EPA
Reliance on a single vendor for critical infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Government Accountability Office awarded $25.9 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC.. THE PURPOSE OF THIS ACTION IS TO ESTABLISH A TASK ORDER AGAINST GSAS ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) CONTRACT WITH A BASE AND EIGHT (8) OPTION PERIODS, FOR GAO NETWORK/DATA, VOICE AND MANAGED SERVICES.

Who is the contractor on this award?

The obligated recipient is LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Government Accountability Office (GAO, Except Comptroller General).

What is the total obligated amount?

The obligated amount is $25.9 million.

What is the period of performance?

Start: 2023-08-01. End: 2026-07-31.

What is the historical spending pattern for network and telecommunications services at GAO?

Analyzing GAO's historical spending on network and telecommunications services prior to this task order would provide context for the $25.9 million award. This includes examining spending trends over the past 5-10 years, identifying previous contract vehicles used, and understanding the average annual expenditure. Such analysis helps determine if this award represents an increase, decrease, or stable level of investment in these critical services. It also helps identify any shifts in technology or service providers over time, indicating potential consolidation or diversification of the agency's telecommunications infrastructure.

How does the pricing structure of this task order compare to other similar GSA EIS awards?

Comparing the unit pricing and overall cost of this $25.9 million task order to other similar task orders issued under the GSA EIS GWAC is crucial for assessing value for money. This involves benchmarking rates for specific services like bandwidth, voice lines, and managed services against a representative sample of comparable awards. Factors such as contract duration, service level agreements, and geographic coverage need to be considered for a fair comparison. A detailed analysis could reveal if GAO is receiving competitive pricing or if there are opportunities for cost savings through negotiation or exploring alternative service providers within the EIS framework.

What are the specific risks associated with Lumen Technologies Government Solutions, Inc. as the awardee?

Assessing the risks associated with Lumen Technologies Government Solutions, Inc. involves reviewing their past performance on federal contracts, particularly within the GSA EIS program. This includes examining any history of contract disputes, performance issues, or financial instability. Understanding their track record in delivering similar network, data, and voice services to large federal agencies is important. Additionally, evaluating their cybersecurity posture and compliance with federal data protection regulations is critical, given the sensitive nature of government network traffic. Any identified risks should be weighed against their demonstrated capabilities and the specific requirements of this task order.

What is the expected impact of this contract on GAO's operational effectiveness?

This task order is expected to ensure the continued operational effectiveness of the Government Accountability Office (GAO) by providing reliable and robust network, data, and voice services. These services are fundamental to GAO's ability to conduct audits, investigations, and oversight activities across the federal government. The contract's duration and the scope of managed services suggest a focus on maintaining and potentially enhancing the agency's IT infrastructure. Improved network performance and reliability can lead to increased productivity for GAO staff, faster data analysis, and more secure communication channels, ultimately supporting GAO's mission to improve government performance and accountability.

Are there any potential cost overruns or budget risks associated with the economic price adjustment (EPA) clause?

The economic price adjustment (EPA) clause in this fixed-price contract introduces a risk of cost overruns if market indices for labor, materials, or other economic factors rise significantly during the contract period. While EPAs are intended to protect contractors from unforeseen cost increases and ensure fair pricing, they can lead to higher-than-anticipated expenditures for the government. The specific indices used for adjustment and the caps or limitations on these adjustments are critical factors in quantifying this risk. Regular monitoring of these indices and the contractor's justification for price adjustments will be necessary to manage this risk effectively and ensure taxpayer funds are used prudently.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 05GA0A23R0001

Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 931 14TH STE 1000 B, DENVER, CO, 80202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $78,941,105

Exercised Options: $25,875,639

Current Obligation: $25,875,639

Actual Outlays: $5,348,623

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q17NSD3006

IDV Type: IDC

Timeline