DOI awarded Lumen Technologies $230M for wired telecom services, with 4 bidders and a 2027 end date

Contract Overview

Contract Amount: $230,177,154 ($230.2M)

Contractor: Lumen Technologies Government Solutions, Inc.

Awarding Agency: Department of the Interior

Start Date: 2019-09-20

End Date: 2027-03-31

Contract Duration: 2,749 days

Daily Burn Rate: $83.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: DOI EIS DATA SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $230.2 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. for work described as: DOI EIS DATA SERVICES Key points: 1. Value for money appears fair given the duration and scope, but detailed benchmarking is needed. 2. Competition dynamics show a moderate level of engagement with 4 bidders. 3. Risk indicators include potential for cost overruns in time and materials contracts. 4. Performance context is tied to essential telecommunications infrastructure for the Department of the Interior. 5. Sector positioning is within the critical wired telecommunications infrastructure for government operations.

Value Assessment

Rating: fair

The total contract value of $230 million over approximately 7.5 years suggests a moderate annual spend. Benchmarking against similar large-scale telecommunications contracts for federal agencies is crucial to determine if the pricing is competitive. The time and materials pricing structure introduces inherent risk for cost control, requiring diligent oversight to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. With four bidders participating, there was a reasonable level of competition, which typically helps in achieving better pricing and service terms. However, the specific details of the bidding process and the nature of the services offered would further clarify the effectiveness of this competition.

Taxpayer Impact: A full and open competition with multiple bidders generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

The Department of the Interior benefits from reliable wired telecommunications services essential for its operations. Services delivered include the provision and maintenance of wired telecommunications infrastructure across various locations. Geographic impact is likely nationwide, supporting the distributed nature of DOI's bureaus and offices. Workforce implications may involve specialized technical roles for installation, maintenance, and support of the network.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and materials contract type can lead to cost overruns if not managed strictly.
Long contract duration (ending 2027) may not keep pace with rapidly evolving telecommunications technology.
Dependence on a single provider for critical infrastructure could pose a risk if service levels degrade.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Contract duration provides stability for essential telecommunications services.
The scale of the contract indicates a significant need for these services within the agency.

Sector Analysis

The wired telecommunications carriers sector is fundamental to modern government operations, providing the backbone for data, voice, and video communication. This contract falls within a market characterized by significant infrastructure investment and technological evolution. Comparable spending benchmarks for large federal agencies often run into hundreds of millions of dollars for comprehensive telecommunications solutions, reflecting the complexity and scale of network requirements.

Small Business Impact

There is no explicit indication of small business set-asides for this contract. Given the nature of large-scale telecommunications infrastructure, it is possible that subcontracting opportunities may exist for specialized services, but this would depend on the prime contractor's strategy. The primary awardee is a large corporation, suggesting limited direct impact on the small business ecosystem for the prime contract itself.

Oversight & Accountability

Oversight for this contract would typically be managed by contracting officers and program managers within the Department of the Interior. Accountability measures would be defined in the contract's performance work statement and service level agreements. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Telecommunications Infrastructure
Network Services Contracts
Department of the Interior IT Spending
Wired Communications Procurement

Risk Flags

Time and Materials Pricing
Long Contract Duration
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $230.2 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC.. DOI EIS DATA SERVICES

Who is the contractor on this award?

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

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $230.2 million.

What is the period of performance?

Start: 2019-09-20. End: 2027-03-31.

What is the historical spending pattern for wired telecommunications services within the Department of the Interior prior to this contract?

Analyzing historical spending patterns for wired telecommunications services within the Department of the Interior (DOI) prior to this contract (awarded September 2019) is crucial for context. While specific historical data for DOI's telecommunications spending is not provided in the abbreviated data, federal agencies typically have ongoing contracts for network services. These often involve significant, multi-year commitments. Trends might show increasing reliance on broadband, shifts towards cloud-based solutions, and varying levels of competition over time. Understanding past expenditures helps in evaluating whether the $230 million award represents an increase, decrease, or stable level of investment, and whether previous contracts were also competitively sourced or sole-source. It also informs whether the agency has historically experienced cost overruns or achieved significant savings in this category.

How does the per-unit cost or service rate compare to industry benchmarks for similar wired telecommunications services?

A detailed comparison of per-unit costs or service rates against industry benchmarks for similar wired telecommunications services is essential for assessing value for money. The provided data does not include specific unit costs (e.g., cost per Mbps, cost per circuit, installation fees). However, given the 'Time and Materials' (T&M) contract type, direct benchmarking is challenging as costs accrue based on labor hours and material usage. To perform this analysis, one would need to obtain the contract's schedule of rates and compare them to published tariffs, government-wide contract vehicles (like Enterprise Infrastructure Solutions - EIS), or publicly available pricing from other large telecommunications providers. Factors like service level agreements (SLAs), geographic coverage, and redundancy requirements significantly influence pricing. Without these specifics, assessing whether $230 million represents a competitive price is difficult.

What are the specific performance metrics and Service Level Agreements (SLAs) associated with this contract?

The specific performance metrics and Service Level Agreements (SLAs) are critical components of this contract, though not detailed in the provided summary data. For a contract of this magnitude supporting essential DOI operations, SLAs would likely cover aspects such as network uptime (e.g., 99.99% availability), latency, jitter, packet loss, and response times for service restoration after an outage. Performance metrics would track adherence to these SLAs. Failure to meet these agreed-upon standards typically results in financial penalties or service credits for the government. Robust SLAs and diligent performance monitoring are key mechanisms to ensure the contractor delivers reliable and high-quality telecommunications services and to hold them accountable for their performance, thereby safeguarding taxpayer investment.

What is Lumen Technologies' track record with similar large-scale federal telecommunications contracts?

Lumen Technologies (formerly CenturyLink) has a significant track record of serving federal agencies with telecommunications and IT services. They are a major player in the government contracting space, often holding large, complex contracts. Evaluating their specific performance on similar contracts would involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or contract terminations, and their success in meeting delivery timelines and service requirements. Their participation in the Enterprise Infrastructure Solutions (EIS) program, a government-wide contract for telecommunications, suggests they are a vetted and capable provider. However, a thorough assessment would require examining specific contract histories beyond this single award.

What are the potential risks associated with the 'Time and Materials' (T&M) contract type for this service?

The 'Time and Materials' (T&M) contract type, used here, presents several potential risks for the government. Primarily, it offers less cost certainty compared to fixed-price contracts. Since the government pays for the actual labor hours and materials used, there's a risk of cost overruns if the project scope expands, inefficiencies arise, or if the contractor's labor rates or material costs are higher than anticipated. Effective management requires stringent oversight, detailed tracking of all hours and materials, and robust negotiation of rates. Without careful monitoring and controls, T&M contracts can become significantly more expensive than initially projected, potentially diminishing the overall value for taxpayers. The contract does specify a ceiling price, which mitigates some risk, but the underlying T&M structure necessitates vigilance.

How does this contract align with the Department of the Interior's broader IT modernization and telecommunications strategy?

This contract for wired telecommunications services is likely a foundational element of the Department of the Interior's (DOI) broader IT modernization and telecommunications strategy. Reliable and high-capacity network infrastructure is essential for supporting digital transformation initiatives, cloud migration, data analytics, and enhanced cybersecurity. The contract's duration (ending March 2027) suggests it aims to provide stable, long-term connectivity. However, the strategy would also need to consider emerging technologies like 5G, SD-WAN, and satellite communications. The agency's strategy should outline how this contract integrates with or transitions towards next-generation solutions, ensuring that the procured services remain relevant and cost-effective as technology evolves and DOI's mission requirements change.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0419R0002

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

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: $600,000,000

Exercised Options: $276,556,413

Current Obligation: $230,177,154

Actual Outlays: $170,379,987

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