HHS awards $11.4M for Trusted Internet Circuit Services to Level 3 Telecom Holdings, LLC

Contract Overview

Contract Amount: $11,379,389 ($11.4M)

Contractor: Level 3 Telecom Holdings, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-01-16

End Date: 2027-01-15

Contract Duration: 1,460 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TRUSTED INTERNET CIRCUIT SERVICES

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.4 million to LEVEL 3 TELECOM HOLDINGS, LLC for work described as: TRUSTED INTERNET CIRCUIT SERVICES Key points: 1. Contract awarded to a single vendor, Level 3 Telecom Holdings, LLC. 2. The contract is for wired telecommunications carrier services. 3. The contract duration is approximately 4 years. 4. The total award value is $11,379,389.04. 5. The contract was awarded under full and open competition.

Value Assessment

Rating: good

The award value of $11.4M for 4 years of telecommunications services appears reasonable. Benchmarking against similar contracts for wired telecommunications carriers is needed for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting a robust price discovery process. The use of Firm Fixed Price contract type helps manage cost certainty.

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

Public Impact

Ensures reliable internet connectivity for critical health research and operations at NIH. Supports the National Institutes of Health's mission by providing essential network infrastructure. The contract's duration ensures continuity of service for a significant period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type.
Long-term duration provides service stability.

Sector Analysis

This contract falls within the Wired Telecommunications Carriers sector, which is crucial for government operations. Spending in this sector is generally stable, driven by the need for reliable data transmission.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award.

Oversight & Accountability

The contract was awarded by the Department of Health and Human Services (NIH), indicating established procurement processes. Further oversight would involve monitoring performance and adherence to contract terms.

Related Government Programs

Wired Telecommunications Carriers
Department of Health and Human Services Contracting
National Institutes of Health Programs

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.4 million to LEVEL 3 TELECOM HOLDINGS, LLC. TRUSTED INTERNET CIRCUIT SERVICES

Who is the contractor on this award?

The obligated recipient is LEVEL 3 TELECOM HOLDINGS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $11.4 million.

What is the period of performance?

Start: 2023-01-16. End: 2027-01-15.

What was the competitive landscape during the bidding process?

The contract was awarded under full and open competition, implying that multiple vendors were eligible to bid. The specific number of bids received and the details of the competitive evaluation are not provided in this data, but the method suggests a fair process for selecting the most advantageous offer.

Are there any identified risks associated with this vendor or service?

No specific risks are flagged in the provided data. However, potential risks could include vendor performance issues, cybersecurity vulnerabilities, or the need for future upgrades as technology evolves. Continuous monitoring of vendor performance and service reliability is recommended.

How does this contract contribute to the overall effectiveness of NIH operations?

This contract is vital for ensuring the reliable and secure internet connectivity necessary for NIH's extensive research, data sharing, and operational activities. Consistent and high-quality telecommunications services directly support the agency's mission to advance health and well-being.

Industry Classification

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

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: RFQ1599380

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Lumen Technologies, Inc

Address: 931 14TH ST, DENVER, CO, 80202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $17,545,034

Exercised Options: $11,379,389

Current Obligation: $11,379,389

Actual Outlays: $8,384,898

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0426R

IDV Type: FSS

Timeline