State Dept. Spends $990K on Internet Services, Awarded to Level 3 Telecom Holdings, LLC
Contract Overview
Contract Amount: $989,672 ($989.7K)
Contractor: Level 3 Telecom Holdings, LLC
Awarding Agency: Department of State
Start Date: 2023-09-30
End Date: 2025-12-31
Contract Duration: 823 days
Daily Burn Rate: $1.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INTERNET SERVICES FOR 8 MONTHS
Place of Performance
Location: BROOMFIELD, BROOMFIELD County, COLORADO, 80021
State: Colorado Government Spending
Plain-Language Summary
Department of State obligated $989,671.95 to LEVEL 3 TELECOM HOLDINGS, LLC for work described as: INTERNET SERVICES FOR 8 MONTHS Key points: 1. Significant contract value for 8 months of internet services. 2. Awarded under full and open competition, suggesting market availability. 3. Potential for cost savings given the firm fixed-price structure. 4. Sector context: Wired Telecommunications Carriers (NAICS 517110).
Value Assessment
Rating: good
The contract value of $989,671.95 for 8 months of internet services appears reasonable given the duration and provider. Benchmarking against similar government contracts for enterprise-level internet would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process generally leads to better price discovery and potentially more favorable pricing for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential services like internet connectivity.
Public Impact
Ensures critical communication infrastructure for the Department of State. Supports ongoing operations and data transmission needs. Potential impact on other government agencies if this is a standard service offering.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is relatively short (8 months), potentially leading to frequent re-competition and administrative overhead.
Positive Signals
- Awarded via full and open competition.
- Firm fixed-price contract provides cost certainty.
Sector Analysis
The Department of State's procurement of internet services falls within the Wired Telecommunications Carriers sector. Spending in this sector is crucial for government operations, and benchmarks vary widely based on bandwidth, service level agreements, and geographic coverage.
Small Business Impact
The data does not indicate whether small businesses were involved in this specific contract or the competitive process. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded as a Delivery Order under an existing agreement, suggesting a structured procurement process. Oversight would focus on service delivery, performance, and adherence to contract terms.
Related Government Programs
- Wired Telecommunications Carriers
- Department of State Contracting
- Department of State Programs
Risk Flags
- Lack of detailed service specifications (bandwidth, SLA).
- Absence of historical pricing data for comparison.
- Short contract duration may lead to administrative inefficiencies.
- No explicit mention of small business participation.
Tags
wired-telecommunications-carriers, department-of-state, co, delivery-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $989,671.95 to LEVEL 3 TELECOM HOLDINGS, LLC. INTERNET SERVICES FOR 8 MONTHS
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 State (Department of State).
What is the total obligated amount?
The obligated amount is $989,671.95.
What is the period of performance?
Start: 2023-09-30. End: 2025-12-31.
What is the expected bandwidth and service level agreement for this internet service?
The provided data does not specify the bandwidth or service level agreement (SLA) for the internet services. These details are crucial for a comprehensive value assessment, as they directly influence the cost and suitability of the service for the Department of State's operational needs. Without this information, it's difficult to definitively benchmark the price against similar contracts.
What is the historical pricing trend for similar internet services procured by the Department of State?
Historical pricing data for similar internet services is not provided. Analyzing past awards for comparable services, considering factors like duration, bandwidth, and provider, would help determine if the current $989,671.95 price represents a fair market value or indicates potential overspending. This context is vital for assessing long-term cost-effectiveness.
Are there any performance metrics or key performance indicators (KPIs) associated with this contract?
The data does not mention specific performance metrics or KPIs for the internet services. Establishing and monitoring KPIs related to uptime, latency, and support response times is essential for ensuring the effectiveness of the service and holding the contractor accountable. This oversight mechanism helps guarantee that the government receives the expected quality and reliability.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT
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)
Contractor Details
Parent Company: Level 3 Communications LLC
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: $1,263,486
Exercised Options: $1,263,486
Current Obligation: $989,672
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F0426R
IDV Type: FSS
Timeline
Start Date: 2023-09-30
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2026-04-08
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