Lumen Technologies awarded $18M for Enterprise Infrastructure Solutions, a telecommunications contract with PBGC

Contract Overview

Contract Amount: $18,063,133 ($18.1M)

Contractor: Lumen Technologies Government Solutions, Inc.

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2019-08-27

End Date: 2026-08-26

Contract Duration: 2,556 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) - TELECOMMUNICATIONS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Pension Benefit Guaranty Corporation obligated $18.1 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. for work described as: ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) - TELECOMMUNICATIONS Key points: 1. Contract value appears reasonable given the duration and scope of telecommunications services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's duration of over 7 years indicates a long-term need for these services. 4. Performance context is tied to essential telecommunications infrastructure for the Pension Benefit Guaranty Corporation. 5. This contract falls within the telecommunications sector, specifically wired carriers. 6. The fixed-price contract type helps mitigate cost overrun risks for the agency.

Value Assessment

Rating: good

The contract value of approximately $18 million over seven years for telecommunications services is within a reasonable range for enterprise-level solutions. Benchmarking against similar large-scale telecommunications contracts awarded by federal agencies suggests that the pricing is competitive, especially considering the full and open competition. The firm fixed-price structure further enhances value by locking in costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of six bidders suggests a healthy level of competition for this telecommunications requirement. A competitive environment generally leads to more favorable pricing and innovative solutions for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down prices and ensured the Pension Benefit Guaranty Corporation received a fair market value for its telecommunications services.

Public Impact

The Pension Benefit Guaranty Corporation (PBGC) benefits directly through the provision of essential telecommunications services. This contract ensures the continuity and reliability of wired telecommunications for the agency's operations. The services delivered are critical for internal communications, data transfer, and operational efficiency. The primary geographic impact is within the District of Columbia, where the PBGC is headquartered. While not directly creating new jobs, it supports existing roles within the PBGC and the contractor's workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to vendor lock-in if not managed carefully.
Reliance on a single vendor for critical infrastructure poses a potential risk.
The specific details of service level agreements and performance metrics are not detailed here.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Firm fixed-price contract type helps control costs and budget predictability.
The contract supports essential government operations for the PBGC.
The vendor, Lumen Technologies, is an established telecommunications provider.

Sector Analysis

This contract falls within the telecommunications sector, specifically the wired telecommunications carriers industry (NAICS 517110). This sector is characterized by significant infrastructure investment and is crucial for supporting government operations. Spending in this area typically involves network services, data transmission, and voice communications. Comparable spending benchmarks for enterprise-wide telecommunications solutions for federal agencies can range from millions to tens of millions of dollars annually, depending on the agency's size and needs.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans for small businesses. Given the nature and scale of enterprise telecommunications solutions, it is common for prime contractors to be large businesses, with potential for small business involvement through subcontracting if specified.

Oversight & Accountability

Oversight for this contract would typically be managed by the Pension Benefit Guaranty Corporation's contracting officers and program managers. Accountability measures are embedded within the contract's terms and conditions, including service level agreements and performance standards. Transparency is generally maintained through contract award databases, though specific performance details may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) Schedules
Networx Contract (legacy)
Enterprise IT Services
Telecommunications Services

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Potential for vendor lock-in over the contract's extended term.

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $18.1 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC.. ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) - TELECOMMUNICATIONS

Who is the contractor on this award?

The obligated recipient is LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Pension Benefit Guaranty Corporation (Pension Benefit Guaranty Corporation).

What is the total obligated amount?

The obligated amount is $18.1 million.

What is the period of performance?

Start: 2019-08-27. End: 2026-08-26.

What is the track record of Lumen Technologies Government Solutions, Inc. in fulfilling federal telecommunications contracts?

Lumen Technologies Government Solutions, Inc., formerly CenturyLink, has a significant history of serving federal agencies with telecommunications and IT services. They have been awarded numerous contracts across various agencies, often through competitive bidding processes. Their experience typically includes providing a wide range of services such as managed network services, voice over IP, data transport, and cybersecurity solutions. While specific performance metrics for individual contracts are often not publicly detailed, their continued awards suggest a generally satisfactory performance history. However, like any large contractor, they may have faced challenges or scrutiny on specific projects, which would be detailed in contract performance reports or IG investigations if they occurred.

How does the awarded value compare to similar telecommunications contracts for federal agencies of similar size?

The awarded value of approximately $18 million over seven years for Enterprise Infrastructure Solutions (EIS) telecommunications services to the Pension Benefit Guaranty Corporation (PBGC) appears to be within a reasonable range for an agency of its size and operational needs. The PBGC is a relatively focused agency compared to larger departments. Benchmarking against contracts for agencies with similar employee counts or budget sizes suggests that this figure is competitive, especially given the 'full and open competition' award. Larger agencies might award hundreds of millions or even billions for similar, albeit more extensive, telecommunications infrastructure.

What are the primary risks associated with this type of long-term telecommunications contract?

The primary risks associated with this long-term telecommunications contract include technological obsolescence, where the contracted services or technology become outdated before the contract ends. Another significant risk is vendor lock-in, making it difficult and costly to switch providers if performance issues arise or better alternatives emerge. Cost escalation, despite the firm fixed-price structure, can occur if scope creep is not managed, or if unforeseen regulatory changes impact service delivery costs. Furthermore, cybersecurity vulnerabilities within the provider's network could pose a risk to the agency's data and operations. Finally, the financial stability of the vendor over the contract's multi-year duration is a consideration.

How effective is the firm fixed-price contract type in ensuring value for money in this scenario?

The firm fixed-price (FFP) contract type is generally effective in ensuring value for money for the government in scenarios like this telecommunications contract. It shifts the risk of cost overruns to the contractor, Lumen Technologies. This means the PBGC knows the exact price it will pay for the services, providing budget certainty. For FFP to be most effective, the scope of work must be clearly defined and stable. If the requirements are well-understood and unlikely to change significantly, FFP incentivizes the contractor to perform efficiently to maximize their profit margin. This structure encourages cost control by the vendor and protects the agency from unexpected price increases.

What does the number of bidders (6) indicate about the competition and potential value?

The fact that six bidders participated in the competition for this telecommunications contract is a positive indicator. It suggests that the requirement was well-defined and attractive enough to draw significant interest from multiple qualified vendors in the market. A higher number of bidders generally leads to more robust competition, which in turn tends to drive down prices and encourage vendors to offer their best possible solutions and terms. This level of competition increases the likelihood that the Pension Benefit Guaranty Corporation secured a fair market price and that the chosen solution represents good value for the taxpayer's money.

Are there any specific performance concerns or positive signals highlighted in the contract data provided?

The provided data does not explicitly highlight specific performance concerns or positive signals for this contract. However, we can infer some positive signals: the contract was awarded under 'full and open competition' with six bidders, suggesting a competitive environment that likely yielded good value. The 'firm fixed price' type indicates budget certainty and risk mitigation for the agency. A negative signal, or at least an area for potential concern, is the long duration (over 7 years), which could lead to technological obsolescence or vendor lock-in if not managed proactively. Without access to performance reports or contract modifications, a deeper assessment of actual performance is not possible from this data alone.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 16PBGC19R0018

Offers Received: 6

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: $22,793,030

Exercised Options: $18,063,133

Current Obligation: $18,063,133

Actual Outlays: $6,456,745

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