VA Awards $269M Enterprise Data Network Services Contract to Lumen Technologies

Contract Overview

Contract Amount: $269,118,671 ($269.1M)

Contractor: Lumen Technologies Government Solutions, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-09-30

End Date: 2026-09-30

Contract Duration: 2,191 days

Daily Burn Rate: $122.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: IT

Official Description: ENTERPRISE DATA NETWORK SERVICES CARRIER A

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78744

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $269.1 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. for work described as: ENTERPRISE DATA NETWORK SERVICES CARRIER A Key points: 1. Significant contract value of $269.1 million over its period of performance. 2. Lumen Technologies Government Solutions, Inc. is the sole awardee. 3. The contract spans from September 2020 to September 2026, indicating a long-term need. 4. The NAICS code 517110 points to the Wired Telecommunications Carriers sector.

Value Assessment

Rating: good

The contract's fixed-price with economic price adjustment structure aims to balance cost certainty with market fluctuations. Benchmarking against similar large-scale telecommunications contracts is necessary to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible vendors to bid.

Taxpayer Impact: The competitive award process is expected to yield reasonable pricing for taxpayers, although the long duration and economic price adjustment warrant ongoing monitoring.

Public Impact

Ensures critical data network infrastructure for the Department of Veterans Affairs. Supports VA's mission to provide healthcare and benefits to veterans. Impacts the telecommunications industry, particularly government contracting segments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment could lead to cost overruns if not managed.
Long contract duration may limit flexibility for future technological advancements.

Positive Signals

Awarded through full and open competition.
Supports a critical government agency's operations.

Sector Analysis

This contract falls within the Wired Telecommunications Carriers sector, which is essential for government operations. Spending benchmarks for similar enterprise-wide network services can vary significantly based on scope and duration.

Small Business Impact

The data does not indicate specific set-asides for small businesses. Large enterprise network contracts often involve prime contractors who may then subcontract to smaller entities, but this is not explicitly detailed.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The contract's fixed-price nature with adjustments requires diligent monitoring of expenditures and performance to ensure accountability.

Related Government Programs

Wired Telecommunications Carriers
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for cost escalation due to EPA.
Long-term commitment may not align with rapid technological changes.
Lack of explicit small business participation details.
Reliance on a single vendor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $269.1 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC.. ENTERPRISE DATA NETWORK SERVICES CARRIER A

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 Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $269.1 million.

What is the period of performance?

Start: 2020-09-30. End: 2026-09-30.

What is the projected cost per user or per service unit under this contract, and how does it compare to industry benchmarks?

The provided data does not include specific per-unit cost breakdowns. To assess value, a detailed analysis of the service catalog, bandwidth, and service level agreements would be required. Comparing these metrics against similar contracts awarded by other federal agencies or large private sector organizations would provide a relevant benchmark for cost-effectiveness.

What are the key performance indicators (KPIs) for this contract, and how is Lumen Technologies' performance being measured?

Specific KPIs are not detailed in the provided summary. Typically, for enterprise data network services, KPIs would include network uptime, latency, bandwidth availability, and response times for issue resolution. The contract's performance clauses and reporting requirements would outline how Lumen's adherence to these metrics is monitored and evaluated by the VA.

How will the economic price adjustment (EPA) clause be managed to ensure fair pricing and prevent potential cost escalations?

The EPA clause allows for adjustments based on specific economic indices, likely related to labor and material costs in the telecommunications sector. The VA must have a robust process for verifying the applicability and accuracy of these adjustments, ensuring they align with the contract's intent and do not lead to unwarranted price increases beyond market realities.

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

Offers Received: 3

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: $764,314,535

Exercised Options: $269,428,798

Current Obligation: $269,118,671

Actual Outlays: $185,600,949

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