Commerce Dept. Awards $4M+ to Lumen for Telecom Services, Ending 2032
Contract Overview
Contract Amount: $4,018,502 ($4.0M)
Contractor: Lumen Technologies Government Solutions, Inc.
Awarding Agency: Department of Commerce
Start Date: 2022-01-27
End Date: 2032-05-31
Contract Duration: 3,777 days
Daily Burn Rate: $1.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TELECOMMUNICATION SERVICES
Place of Performance
Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $4.0 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. for work described as: TELECOMMUNICATION SERVICES Key points: 1. Significant contract value of over $4 million awarded. 2. Lumen Technologies is the sole awardee, raising competition questions. 3. Long contract duration (10 years) presents potential risk. 4. Telecommunication Services sector sees substantial government spending.
Value Assessment
Rating: fair
The contract value is substantial for telecommunication services. Benchmarking against similar government contracts for wired telecommunications carriers is necessary to assess if the pricing is competitive, especially given the long duration.
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. However, the single awardee, Lumen Technologies, warrants further investigation into the bidding landscape to ensure robust price discovery.
Taxpayer Impact: Taxpayer funds are committed for a decade, necessitating ongoing scrutiny to ensure value for money and prevent cost overruns.
Public Impact
Ensures continued critical telecommunication infrastructure for the Department of Commerce. Potential for service disruptions if competition was not fully leveraged. Long-term commitment may limit adoption of newer, potentially more cost-effective technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (10 years)
- Single awardee despite full and open competition
Positive Signals
- Awarded under full and open competition
- Firm Fixed Price contract type
Sector Analysis
This contract falls within the Telecommunication Services sector, specifically wired telecommunications carriers. Government spending in this area is consistent, supporting essential agency operations.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses had an opportunity to participate in this procurement.
Oversight & Accountability
The long-term nature of the contract requires robust oversight from the Department of Commerce to ensure performance standards are met and that pricing remains competitive throughout the contract life.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Commerce Contracting
- Office of the Secretary Programs
Risk Flags
- Long contract duration (10 years)
- Potential for vendor lock-in
- Risk of technological obsolescence
- Limited visibility into true competitive pricing
- Dependence on a single provider for critical services
Tags
wired-telecommunications-carriers, department-of-commerce, md, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $4.0 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC.. TELECOMMUNICATION 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 Commerce (Office of the Secretary).
What is the total obligated amount?
The obligated amount is $4.0 million.
What is the period of performance?
Start: 2022-01-27. End: 2032-05-31.
What was the competitive landscape during the bidding process, and were there other qualified bidders who did not win?
While the contract was awarded under 'full and open competition,' the fact that only one awardee, Lumen Technologies, was selected suggests a potentially narrow field of bidders or specific technical requirements. Further investigation into the solicitation details and bid submissions would clarify the extent of competition and whether other capable vendors were discouraged or unable to compete effectively.
How does the firm fixed price compare to market rates for similar telecommunication services over a 10-year period?
A firm fixed price provides cost certainty but requires careful initial pricing. Benchmarking this contract's price against current and projected market rates for comparable wired telecommunication services over its 10-year duration is crucial. Fluctuations in technology and market dynamics could lead to overpayment if the initial price was not sufficiently forward-looking or if market conditions change significantly.
What mechanisms are in place to ensure the Department of Commerce receives value and can adapt to technological advancements during this long contract term?
The contract's 10-year duration necessitates built-in flexibility and oversight. Mechanisms such as regular performance reviews, potential price adjustments based on objective criteria, and clear clauses for incorporating technological upgrades are vital. Without these, the agency risks being locked into outdated or overpriced services, diminishing overall value and hindering modernization efforts.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
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: $4,018,502
Exercised Options: $4,018,502
Current Obligation: $4,018,502
Actual Outlays: $4,017,502
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
Start Date: 2022-01-27
Current End Date: 2032-05-31
Potential End Date: 2032-05-31 00:00:00
Last Modified: 2026-03-05
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