VA Awards $31.6M to Lumen for Telecom Services, Ending April 2025

Contract Overview

Contract Amount: $31,588,998 ($31.6M)

Contractor: Lumen Technologies Government Solutions, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-10-01

End Date: 2025-04-30

Contract Duration: 942 days

Daily Burn Rate: $33.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LUMEN NETWORX CIRCUITS, CSDES AND SEDS SERVICES

Place of Performance

Location: NORTH LITTLE ROCK, PULASKI County, ARKANSAS, 72114

State: Arkansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $31.6 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC for work described as: LUMEN NETWORX CIRCUITS, CSDES AND SEDS SERVICES Key points: 1. Significant contract value of $31.6 million for telecommunications services. 2. Lumen Technologies Government Solutions, Inc. is the sole awardee. 3. Potential risk associated with a single vendor for critical infrastructure. 4. Spending falls within the Wired Telecommunications Carriers sector.

Value Assessment

Rating: good

The award amount of $31.6 million appears reasonable for a multi-year telecommunications contract of this scope. Benchmarking against similar contracts for wired telecommunications carriers would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary telecommunications services.

Public Impact

Ensures continued connectivity for Department of Veterans Affairs operations. Supports critical communication infrastructure for veteran services. Potential for service disruptions if vendor performance falters.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Single awardee for critical infrastructure
Long contract duration (942 days)

Positive Signals

Awarded under full and open competition
Firm fixed price contract type

Sector Analysis

This contract falls under the Wired Telecommunications Carriers sector (NAICS 517110). Spending in this sector is crucial for government operations, and benchmarks vary widely based on service type and scale.

Small Business Impact

The data indicates that small businesses were not directly involved in this specific award, as the prime contractor is Lumen Technologies Government Solutions, Inc. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. The firm fixed price structure provides some cost certainty, but performance monitoring is essential.

Related Government Programs

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

Risk Flags

Sole awardee for critical infrastructure
Long contract duration
Potential for vendor lock-in
Dependence on a single provider for essential services

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $31.6 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. LUMEN NETWORX CIRCUITS, CSDES AND SEDS 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 Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $31.6 million.

What is the period of performance?

Start: 2022-10-01. End: 2025-04-30.

What specific telecommunications services are included in this $31.6 million award, and how do they align with VA's mission-critical needs?

The contract covers CSDES and SEDS services, which likely refer to specific types of circuit-switched data and possibly other data services. These are essential for maintaining reliable communication networks supporting VA operations, including patient care coordination, data management, and administrative functions. The alignment is direct, as robust telecommunications are foundational to modern government service delivery.

What are the key performance indicators (KPIs) and service level agreements (SLAs) in place to ensure Lumen meets the VA's requirements and to mitigate performance risks?

While not detailed in the provided data, a contract of this magnitude typically includes stringent KPIs and SLAs. These would likely cover network uptime, latency, data transfer speeds, and response times for issue resolution. The VA's contracting officers would monitor these metrics closely to ensure service quality and hold Lumen accountable for performance, mitigating risks associated with service delivery.

How does the $31.6 million award compare to historical spending on similar telecommunications services by the VA or other federal agencies?

Without specific historical data for comparable VA telecommunications contracts, a direct comparison is difficult. However, $31.6 million over approximately 2.5 years (942 days) suggests an average annual spend of roughly $12.6 million. This figure needs to be contextualized against the scope and complexity of the services provided, the number of locations supported, and prevailing market rates for similar enterprise-level telecommunications solutions.

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 - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 200-40-08

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4250 N FAIRFAX DRIVE, ARLINGTON, VA, 22203

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $58,583,970

Exercised Options: $58,583,970

Current Obligation: $31,588,998

Actual Outlays: $18,513,811

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T07NSD0002

IDV Type: IDC

Timeline