Naval Inventory Control Point contract for ADP & Telecommunication Services awarded to Lucent Technologies for over $35M
Contract Overview
Contract Amount: $35,240,937 ($35.2M)
Contractor: Alcatel-Lucent USA Inc.
Awarding Agency: Department of Defense
Start Date: 2004-03-19
End Date: 2008-07-31
Contract Duration: 1,595 days
Daily Burn Rate: $22.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: IT
Official Description: 200406!4M3024!1700!JA115 !NAVAL INVENTORY CONTROL POINT !N6893997D0040 !A!N! !Y!EP91 ! !20040319!20060601!015548597!015548597!933503385!N!LUCENT TECHNOLOGIES INC !5440 MILLSTREAM ROAD, SUIT!MCLEANSVILLE !NC!27301!38000!015!37!LEWISTON WOODVILLE !BERTIE !N CAROLINA!+000037890457!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !C2 !CONSTRUCTION !000 !* !541512!E! !5!B!S! ! ! !99990909!B!A!Y!B! !A!U!K!2!004!B! !Z!N!Z! ! !Y!C!N! ! ! !Z!Z!A!A!000!A!D!N! ! ! ! ! !N00104!0001! !
Place of Performance
Location: MC LEANSVILLE, GUILFORD County, NORTH CAROLINA, 27301
Plain-Language Summary
Department of Defense obligated $35.2 million to ALCATEL-LUCENT USA INC. for work described as: 200406!4M3024!1700!JA115 !NAVAL INVENTORY CONTROL POINT !N6893997D0040 !A!N! !Y!EP91 ! !20040319!20060601!015548597!015548597!933503385!N!LUCENT TECHNOLOGIES INC !5440 MILLSTREAM ROAD, SUIT!MCLEANSVILLE !NC!27301!38000!015!37!LEWISTON WOODVILLE !BERT… Key points: 1. Contract value of $35.2M for ADP and Telecommunication Services. 2. Awarded by the Department of the Navy, indicating a focus on defense-related IT infrastructure. 3. The contract duration of 1595 days suggests a long-term need for these services. 4. Fixed Price with Economic Price Adjustment (FP-EPA) contract type implies potential for price fluctuations. 5. The North Carolina location for the contractor may suggest regional IT support capabilities. 6. This contract falls under 'Other ADP & Telecommunication Services', a broad category.
Value Assessment
Rating: fair
The contract value of $35.2 million for ADP and Telecommunication Services appears substantial. Benchmarking this against similar contracts for Computer Systems Design Services (NAICS 541512) would be necessary for a precise value-for-money assessment. The FP-EPA contract type introduces a degree of risk regarding cost overruns due to potential economic adjustments. Without more granular data on the specific services rendered and their market rates, it's difficult to definitively assess if this represents excellent value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION', suggesting that multiple bidders had the opportunity to compete. The presence of 4 bids indicates a moderate level of competition. While full and open competition is generally favorable for price discovery, the specific number of bidders can influence the final price. A higher number of bidders typically leads to more competitive pricing.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing due to the full and open competition. However, the actual savings depend on the effectiveness of the bidding process and the final negotiated price.
Public Impact
The Department of the Navy benefits from the provision of essential ADP and Telecommunication Services. This contract supports the operational readiness and technological infrastructure of naval operations. The services likely impact personnel involved in logistics, inventory management, and communication systems. Geographic impact is primarily centered around naval facilities requiring these IT and communication services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The FP-EPA contract type carries inherent risk of price escalation.
- Limited information on specific performance metrics makes it hard to gauge service quality.
- The broad category of 'Other ADP & Telecommunication Services' could mask inefficiencies if not well-managed.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process.
- The contractor, Lucent Technologies, is a known entity in the telecommunications sector.
- The contract duration implies a sustained need and potential for reliable service delivery.
Sector Analysis
This contract falls within the Information Technology and Telecommunications sector, specifically focusing on ADP and communication services. The market for such services is vast and highly competitive, with numerous providers ranging from large corporations to specialized firms. The Department of Defense is a significant consumer of these services, often requiring robust and secure solutions. Benchmarking against other government contracts for similar IT services would provide context on pricing and scope.
Small Business Impact
There is no indication from the provided data that this contract included small business set-asides or subcontracting requirements. The award to Lucent Technologies, a large corporation, suggests that small businesses were likely not primary recipients of the prime contract funds. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed performance data may be less accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Information Technology Contracting Office (DITCO) contracts
- Naval Sea Systems Command (NAVSEA) IT procurements
- General Services Administration (GSA) IT Schedule contracts
- Other ADP and Telecommunication Services contracts
Risk Flags
- Potential for cost overruns due to FP-EPA clause.
- Broad service category may obscure specific performance issues.
- Limited data on specific deliverables and performance metrics.
Tags
it, defense, department-of-defense, department-of-the-navy, telecommunication-services, computer-systems-design-services, full-and-open-competition, fixed-price-economic-price-adjustment, large-contract, north-carolina, naval-inventory-control-point
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.2 million to ALCATEL-LUCENT USA INC.. 200406!4M3024!1700!JA115 !NAVAL INVENTORY CONTROL POINT !N6893997D0040 !A!N! !Y!EP91 ! !20040319!20060601!015548597!015548597!933503385!N!LUCENT TECHNOLOGIES INC !5440 MILLSTREAM ROAD, SUIT!MCLEANSVILLE !NC!27301!38000!015!37!LEWISTON WOODVILLE !BERTIE !N CAROLINA!+000037890457!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !C2 !CONSTRUCTION !000 !* !541512!E! !5!B!S! ! ! !999
Who is the contractor on this award?
The obligated recipient is ALCATEL-LUCENT USA INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $35.2 million.
What is the period of performance?
Start: 2004-03-19. End: 2008-07-31.
What specific ADP and Telecommunication Services were provided under this contract?
The data indicates the contract was for 'OTHER ADP & TELECOMMUNICATION SERVICES' under NAICS code 541512 (Computer Systems Design Services). This broad categorization suggests services could range from network design and implementation, hardware/software integration, telecommunications infrastructure support, to IT consulting and managed services. Without more specific line-item details or a Statement of Work, the precise nature of the services remains general. However, given the awardee (Lucent Technologies) and the awarding agency (Department of the Navy), it likely involved complex communication systems and data processing capabilities crucial for naval operations.
How does the contract value of $35.2 million compare to similar contracts for Computer Systems Design Services awarded around the same period?
Comparing the $35.2 million contract value requires access to a broader dataset of similar contracts from 2004-2008 for NAICS 541512. However, for a contract of this size and duration (over 4 years), it represents a significant investment. Contracts of this magnitude are typically awarded for large-scale IT infrastructure projects, system integration, or comprehensive support services. The fact that it was awarded under full and open competition with 4 bidders suggests a competitive market, but the final price is relative to the scope and complexity of the specific services required by the Naval Inventory Control Point.
What are the potential risks associated with the 'Fixed Price with Economic Price Adjustment' (FP-EPA) contract type for this procurement?
The FP-EPA contract type introduces a risk of cost escalation for the government. While the base price is fixed, the 'Economic Price Adjustment' clause allows for adjustments based on specified economic factors, such as inflation, labor costs, or material price changes. For a contract spanning over four years (2004-2008), these economic fluctuations can significantly impact the total cost. The government bears the risk of these upward adjustments, potentially leading to higher overall spending than initially budgeted if economic conditions are unfavorable. Careful monitoring and clear adjustment formulas are crucial to mitigate this risk.
What was the track record of Lucent Technologies with government contracts prior to this award?
Lucent Technologies, prior to its acquisition and subsequent transformations, was a major player in the telecommunications equipment and services industry. While specific government contract history for this exact period requires deep database searches, Lucent (and its predecessors like AT&T Network Systems) historically held numerous contracts with various government agencies, including the Department of Defense, for telecommunications infrastructure, network equipment, and related services. Their experience would likely have positioned them as a capable bidder for complex IT and communication system contracts, though performance on specific contracts would vary.
How effective was the competition level (4 bidders) in ensuring a competitive price for taxpayers?
Having four bidders for a contract of this size and nature generally indicates a healthy level of competition. Full and open competition allows multiple vendors to vie for the contract, which typically drives down prices as companies seek to win the bid. With four competitors, there is a reasonable chance that the pricing submitted was competitive. However, the true measure of effectiveness would involve comparing the awarded price against independent cost estimates or the prices offered by the losing bidders, information not readily available in this dataset. A higher number of bidders (e.g., 8+) might have yielded even more aggressive pricing.
What is the significance of the North Carolina (NC) state code for the contractor's address in relation to federal spending?
The North Carolina state code (NC) indicates the physical location of Lucent Technologies' facility relevant to this contract. While not directly impacting the contract's value or scope, it can have implications for regional economic impact, workforce development, and potentially the logistical aspects of service delivery. Federal agencies often consider geographic distribution and the potential to support local economies when awarding contracts, although the primary drivers remain technical capability and price. For this specific contract, it suggests a presence of significant IT and telecommunications infrastructure support within North Carolina.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 4
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Contractor Details
Parent Company: Alcatel Lucent (UEI: 275127975)
Address: 5440 MILLSTREAM RD, MC LEANSVILLE, NC, 09
Business Categories: Category Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N6893997D0040
IDV Type: IDC
Timeline
Start Date: 2004-03-19
Current End Date: 2008-07-31
Potential End Date: 2008-08-31 00:00:00
Last Modified: 2008-07-30
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