VA Spends $20.9M on Long Distance Telecom Services for Region 2 with Lumen Technologies

Contract Overview

Contract Amount: $20,897,200 ($20.9M)

Contractor: Lumen Technologies Government Solutions, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2011-12-01

End Date: 2015-11-30

Contract Duration: 1,460 days

Daily Burn Rate: $14.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LONG DISTANCE TELEPHONE SERVICES TO VA REGION 2.

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64128, UNITED STATES OF AMERICA

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20.9 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC for work described as: LONG DISTANCE TELEPHONE SERVICES TO VA REGION 2. Key points: 1. The contract awarded to Lumen Technologies Government Solutions, Inc. for long distance telephone services represents a significant investment in telecommunications infrastructure for VA Region 2. 2. Competition was full and open, suggesting a potentially competitive bidding process that could lead to favorable pricing. 3. The contract duration of 1460 days (4 years) indicates a long-term commitment to these services. 4. The sector is Wired Telecommunications Carriers, a critical component of modern government operations.

Value Assessment

Rating: fair

The award amount of $20.9 million over four years averages to approximately $5.2 million annually. Without specific benchmarks for similar VA region-wide long-distance contracts, it's difficult to definitively assess if this pricing is excellent or concerning. However, the firm fixed-price structure provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can drive competitive pricing. The impact on price discovery is generally positive in such scenarios, as multiple vendors vie for the contract.

Taxpayer Impact: Taxpayer funds are being utilized for essential telecommunications services, with the expectation that the competitive process ensured a reasonable price for the value received.

Public Impact

Ensures vital communication links for veterans' services across VA Region 2. Supports the operational continuity of the Department of Veterans Affairs. The contract's fixed price offers budget predictability for the agency. Potential for service disruptions if the provider fails to meet contractual obligations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or quality indicators in the provided data.
Potential for vendor lock-in given the long-term nature of the contract.

Positive Signals

Awarded under full and open competition.
Firm fixed-price contract provides cost certainty.
Long-term commitment ensures service stability.

Sector Analysis

The Wired Telecommunications Carriers sector is essential for government operations, providing the backbone for communication. Spending benchmarks for such services can vary widely based on geographic scope, service level agreements, and technological advancements. This $20.9 million contract appears substantial, reflecting the scale of services required for a large VA region.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

Oversight would typically involve regular performance reviews by the Department of Veterans Affairs to ensure Lumen Technologies is meeting contractual requirements and service level agreements. Accountability is maintained through the contract terms and the potential for remedies if performance is deficient.

Related Government Programs

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

Risk Flags

Long contract duration may limit flexibility.
Reliance on a single vendor for critical infrastructure.
Lack of detailed performance metrics in summary data.
Potential for price increases in subsequent contract periods if not locked in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20.9 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. LONG DISTANCE TELEPHONE SERVICES TO VA REGION 2.

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 $20.9 million.

What is the period of performance?

Start: 2011-12-01. End: 2015-11-30.

What is the average cost per user or per line for these long-distance services, and how does it compare to industry averages?

The provided data does not offer granular details on the number of users or lines, making a per-unit cost calculation impossible. To assess value, this information would be crucial. Comparing it to industry averages for similar government contracts would reveal if the $20.9 million expenditure is cost-effective or if there are opportunities for savings through renegotiation or exploring alternative providers in future procurements.

What are the specific risks associated with relying on a single provider for such a critical service over a four-year period?

Key risks include potential service disruptions due to provider-specific issues (e.g., technical failures, financial instability), lack of flexibility to adopt newer, more cost-effective technologies, and reduced bargaining power in future contract renewals. The government might also face challenges if the provider's service quality degrades over time without clear recourse or competitive alternatives readily available.

How effectively does this contract support the VA's mission of providing healthcare and benefits to veterans?

Reliable long-distance telephone services are fundamental for the VA's operations, enabling communication between facilities, staff, and veterans seeking care or benefits. This contract ensures that essential communication channels remain open and functional across Region 2. The effectiveness hinges on the quality and reliability of the service provided by Lumen Technologies, directly impacting the VA's ability to serve veterans efficiently.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lumen Technologies, Inc (UEI: 050911668)

Address: 4250 FAIRFAX DR, ARLINGTON, VA, 22203

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,083,283

Exercised Options: $20,897,200

Current Obligation: $20,897,200

Parent Contract

Parent Award PIID: GS00T07NSD0002

IDV Type: IDC

Timeline