Interior's $24.2M VoIP Contract Awarded to Lumen Technologies Without Competition

Contract Overview

Contract Amount: $24,193 ($24.2K)

Contractor: Lumen Technologies Government Solutions, Inc

Awarding Agency: Department of the Interior

Start Date: 2023-11-20

End Date: 2024-11-15

Contract Duration: 361 days

Daily Burn Rate: $67/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SUPPLY: OR-OFFICE OF THE RD-CENTURY LINK VOIP CONTRACT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $24,193.06 to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC for work described as: SUPPLY: OR-OFFICE OF THE RD-CENTURY LINK VOIP CONTRACT Key points: 1. Significant spending on wired telecommunications services. 2. Sole-source award raises questions about price discovery. 3. Contract duration of 361 days. 4. Potential for better pricing through competition.

Value Assessment

Rating: questionable

The contract's value is $24.2 million for a 361-day period. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar wired telecommunications carrier contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a fully competed contract.

Taxpayer Impact: The lack of competition could lead to overpayment, impacting taxpayer funds negatively.

Public Impact

Taxpayers may be paying more than necessary for essential communication services. Lack of transparency in the procurement process. Government reliance on a single vendor for critical infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 67 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Essential service provision

Sector Analysis

The Wired Telecommunications Carriers sector involves providing voice and data transmission services. Spending benchmarks vary widely based on service type and volume, but competitive bidding typically drives down costs.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, missing an opportunity to support small business participation in federal contracting.

Oversight & Accountability

The sole-source nature of this award warrants further review by oversight bodies to ensure the government received fair value and that competition was appropriately waived.

Related Government Programs

Wired Telecommunications Carriers
Department of the Interior Contracting
U.S. Fish and Wildlife Service Programs

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency
Missed small business opportunities

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $24,193.06 to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. SUPPLY: OR-OFFICE OF THE RD-CENTURY LINK VOIP CONTRACT

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 (U.S. Fish and Wildlife Service).

What is the total obligated amount?

The obligated amount is $24,193.06.

What is the period of performance?

Start: 2023-11-20. End: 2024-11-15.

What was the justification for awarding this contract sole-source?

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, urgent needs, or specific technical requirements that only one vendor can meet. Without this justification, the award appears to bypass standard procurement procedures designed to ensure best value.

What is the estimated cost savings if this contract were competed?

Estimating cost savings from competition is challenging without market data. However, studies consistently show that competitive procurements yield significant savings compared to sole-source awards. For a $24.2 million contract, savings could range from 10% to 30% or more, depending on market dynamics and the specific services procured.

How does this contract's pricing compare to industry benchmarks for similar VoIP services?

Direct comparison is difficult without knowing the exact service level agreements and technical specifications. However, the absence of competition suggests the pricing may not reflect the most competitive rates available in the market. Industry benchmarks for enterprise VoIP solutions often show lower per-unit costs when procured through competitive processes.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 140F1S24Q0005

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4250 N FAIRFAX DRIVE 4TH FLOOR, ARLINGTON, VA, 22203

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

Financial Breakdown

Contract Ceiling: $112,844

Exercised Options: $24,193

Current Obligation: $24,193

Actual Outlays: $24,193

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline