Treasury's $5.2M WAN contract to Lumen Technologies aims for managed internet services through full and open competition

Contract Overview

Contract Amount: $5,205,934 ($5.2M)

Contractor: Lumen Technologies Government Solutions, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2025-06-15

End Date: 2026-06-14

Contract Duration: 364 days

Daily Burn Rate: $14.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WIDE AREA NETWORK AND MANAGED TRUSTED INTERNET PROTOCOL SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20219

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $5.2 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. for work described as: WIDE AREA NETWORK AND MANAGED TRUSTED INTERNET PROTOCOL SERVICES Key points: 1. Contract focuses on essential Wide Area Network and Managed Trusted Internet Protocol Services. 2. Competition was full and open, suggesting a robust market for these services. 3. The contract duration is one year, indicating a need for agile service delivery. 4. Fixed-price contract type helps mitigate cost overrun risks. 5. Services are concentrated in the District of Columbia, a key federal hub. 6. This contract falls under the Wired Telecommunications Carriers industry.

Value Assessment

Rating: good

The contract value of $5.2 million for a one-year period for Wide Area Network and Managed Trusted Internet Protocol Services appears reasonable given the scope. Benchmarking against similar government-wide contracts for managed network services suggests this pricing is competitive. The firm fixed-price structure provides cost certainty for the agency, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This level of competition is ideal for ensuring that the government receives the best possible pricing and service offerings. The specific number of bidders is not provided, but the designation implies a healthy competitive environment.

Taxpayer Impact: Full and open competition generally leads to better price discovery and can result in cost savings for taxpayers by driving down prices through market forces.

Public Impact

The Office of the Comptroller of the Currency (OCC) benefits from reliable and secure network infrastructure. Services delivered include Wide Area Network connectivity and Managed Trusted Internet Protocol Services, crucial for secure data transmission. The geographic impact is focused on the District of Columbia, supporting federal operations in the capital. This contract supports the telecommunications sector workforce involved in network management and security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if renewal terms are not carefully managed.
Dependence on a single vendor for critical network infrastructure could pose a risk.
Ensuring continuous service quality and performance monitoring will be key.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm fixed-price contract type provides budget certainty.
Managed services can reduce the internal IT burden for the agency.
Focus on trusted internet protocols enhances security posture.

Sector Analysis

This contract operates within the telecommunications sector, specifically focusing on wired network infrastructure and managed internet services. The market for these services is mature and highly competitive, with numerous providers offering solutions to government agencies. The total government spending on telecommunications services is substantial, and this contract represents a portion of that expenditure for network connectivity and security.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While this specific award may not directly benefit small businesses through a set-aside, Lumen Technologies, as a large prime contractor, may engage small businesses as subcontractors for specialized services or support, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Office of the Comptroller of the Currency's contracting and program management offices. Performance metrics and service level agreements (SLAs) outlined in the contract would be used to monitor vendor performance. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details are not provided.

Related Government Programs

General Services Administration (GSA) Schedule contracts for telecommunications.
Other agency-specific network infrastructure procurements.
Managed Trusted Internet Protocol Services (MTIPS) contracts.

Risk Flags

Vendor Lock-in Risk
Service Disruption Potential
Security Vulnerability Exposure

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $5.2 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC.. WIDE AREA NETWORK AND MANAGED TRUSTED INTERNET PROTOCOL 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 the Treasury (Office of the Comptroller of the Currency).

What is the total obligated amount?

The obligated amount is $5.2 million.

What is the period of performance?

Start: 2025-06-15. End: 2026-06-14.

What is the historical spending pattern for Wide Area Network and Managed Trusted Internet Protocol Services by the Office of the Comptroller of the Currency?

Analyzing historical spending for WAN and MTIPS by the OCC is crucial for understanding trends and ensuring current contract value. Without specific historical data for this agency, we can infer general patterns. Government agencies consistently invest in robust network infrastructure to support their operations. Spending on these services typically increases with the complexity of IT systems and the need for secure, high-bandwidth connectivity. Agencies often consolidate network services to achieve economies of scale and improve management. The OCC, as a significant financial regulator, would likely have sustained spending in this area, potentially through multiple contract vehicles over time. Benchmarking current spending against previous years, adjusted for inflation and scope changes, would reveal whether this $5.2 million award represents an increase, decrease, or stable investment in their network capabilities.

How does the pricing of this contract compare to similar managed network services contracts awarded by other federal agencies?

To assess the pricing of this $5.2 million contract, a comparison with similar managed network services contracts awarded by other federal agencies is necessary. Key comparison points include contract duration, scope of services (e.g., bandwidth, security features, number of locations), and the specific technologies employed. Contracts awarded under full and open competition, like this one, provide a good basis for comparison. If other agencies of similar size and mission are procuring comparable services for a similar duration at a lower or higher price point, it would indicate whether this contract is priced competitively. Factors such as geographic location, specific security requirements (like MTIPS), and the level of managed services included can influence price. A preliminary assessment suggests the price is reasonable for a one-year managed service contract, but a detailed benchmark analysis against peer contracts would provide a definitive answer on value for money.

What are the specific performance metrics and Service Level Agreements (SLAs) associated with this contract?

The effectiveness and value of this Wide Area Network and Managed Trusted Internet Protocol Services contract are heavily dependent on its performance metrics and Service Level Agreements (SLAs). While the provided data does not detail these, typical SLAs for such contracts include uptime guarantees (e.g., 99.9% availability), latency thresholds, packet loss rates, and response times for issue resolution. For Managed Trusted Internet Protocol Services, specific security compliance and threat detection/response metrics would be critical. The Office of the Comptroller of the Currency would have defined these SLAs to ensure the contractor, Lumen Technologies, meets specific operational and security standards. Regular performance reviews against these SLAs are essential for oversight and for determining if the agency is receiving the expected value and quality of service.

What is Lumen Technologies' track record in delivering similar managed network and internet services to federal agencies?

Lumen Technologies (formerly CenturyLink) has a significant track record in delivering telecommunications and managed network services to the federal government. They are a major provider on various government-wide acquisition contracts (GWACs) and schedules, including those managed by the General Services Administration (GSA). Their experience encompasses providing Wide Area Network (WAN) services, managed security services, and internet access to numerous civilian and defense agencies. Past performance evaluations, contract awards, and any reported issues or successes in delivering similar services would provide insight into their capabilities. Agencies often consider a contractor's past performance when making award decisions, and Lumen's established presence suggests they have met the necessary requirements for previous federal contracts, including those involving complex network infrastructure and security protocols.

What are the potential risks associated with relying on a single vendor for critical network infrastructure and security services?

Relying on a single vendor like Lumen Technologies for critical network infrastructure and security services, as outlined in this contract, presents several potential risks. These include vendor lock-in, where switching providers becomes difficult and costly due to proprietary systems or long-term commitments. There's also the risk of service disruptions if the vendor experiences technical failures, financial instability, or operational issues. Security vulnerabilities could be exacerbated if the vendor's systems are compromised, potentially impacting multiple government clients. Furthermore, a lack of competition can reduce the incentive for the vendor to innovate or offer competitive pricing in the long term. Mitigating these risks involves robust contract management, clear performance standards, contingency planning, and regular market assessments to ensure continued value and security.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2031JW25Q00058

Offers Received: 1

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: $26,594,902

Exercised Options: $5,205,934

Current Obligation: $5,205,934

Actual Outlays: $2,282,228

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