VA awards $60M telecommunications contract to Lumen Technologies for wired services in Arkansas

Contract Overview

Contract Amount: $59,846,515 ($59.8M)

Contractor: Lumen Technologies Government Solutions, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-11-14

End Date: 2020-12-31

Contract Duration: 413 days

Daily Burn Rate: $144.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TELECOMMUNICATIONS ENGINEERING&DESIGN TPO FROM CENTURYLINK.

Place of Performance

Location: NORTH LITTLE ROCK, PULASKI County, ARKANSAS, 72114

State: Arkansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $59.8 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC for work described as: TELECOMMUNICATIONS ENGINEERING&DESIGN TPO FROM CENTURYLINK. Key points: 1. Contract value represents a significant investment in essential communication infrastructure for the VA. 2. Full and open competition suggests a potentially competitive bidding process, aiming for favorable pricing. 3. The fixed-price contract type shifts performance risk to the contractor, Lumen Technologies. 4. This award falls within the wired telecommunications carriers industry, a critical support sector. 5. The duration of the contract (over a year) indicates a need for sustained service delivery. 6. The contract's focus on a specific geographic region (Arkansas) highlights localized infrastructure needs.

Value Assessment

Rating: good

The contract value of approximately $60 million for wired telecommunications services appears reasonable given the scope and duration. Benchmarking against similar large-scale telecommunications contracts for federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure suggests the government has negotiated a set price, limiting cost overruns if the contractor manages their expenses effectively. However, without detailed service breakdowns and market comparisons for specific telecommunication services, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The presence of multiple bidders (3 noted) suggests a healthy level of competition for this telecommunications requirement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging innovation from a wider pool of providers.

Public Impact

Veterans in Arkansas will benefit from reliable and potentially enhanced telecommunications services supporting VA facilities. Essential wired telecommunications infrastructure and support services are being delivered to the Department of Veterans Affairs. The geographic impact is concentrated within Arkansas, ensuring critical communication links for VA operations in the state. The contract supports jobs within the telecommunications sector, particularly for Lumen Technologies and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single provider for critical infrastructure could pose risks during service disruptions.
Ensuring ongoing cost-effectiveness throughout the contract lifecycle requires diligent performance monitoring.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm fixed-price contract type transfers cost overrun risk to the contractor.
The contractor, Lumen Technologies, is an established provider with experience in government contracts.
The contract addresses a fundamental need for reliable telecommunications infrastructure.

Sector Analysis

This contract falls within the broader Information Technology and Telecommunications sector, specifically focusing on wired telecommunications carriers. The market for such services is mature, with several large providers competing for government contracts. Federal spending in this area is substantial, supporting the operational needs of various agencies. Comparable spending benchmarks would involve analyzing other large federal contracts for similar telecommunications infrastructure and services across different agencies and regions.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a large contract awarded to a major telecommunications provider, the primary focus is likely on the prime contractor's capabilities. However, Lumen Technologies may engage small businesses for specific support roles or services, which would be detailed in subcontracting plans not provided here. The absence of a small business set-aside suggests the competition was geared towards larger, established firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the Department of Veterans Affairs. Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office within the VA may conduct audits or investigations if specific concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Federal Telecommunications Services
Information Technology Services
Network Infrastructure Contracts
Government Communications Support

Risk Flags

Potential for service disruption impacting VA operations.
Risk of cost increases if contract scope expands beyond initial estimates.
Dependency on a single vendor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $59.8 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. TELECOMMUNICATIONS ENGINEERING&DESIGN TPO FROM CENTURYLINK.

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 $59.8 million.

What is the period of performance?

Start: 2019-11-14. End: 2020-12-31.

What is the historical spending pattern of the Department of Veterans Affairs on telecommunications services, and how does this contract compare?

Analyzing the VA's historical spending on telecommunications requires accessing detailed procurement data over several fiscal years. Generally, federal agencies like the VA have consistent and significant spending on telecommunications to support their vast network of facilities and services. This $60 million contract represents a substantial, but potentially typical, investment for a large agency over its duration. Without specific historical data for the VA's telecommunications budget and contract awards, it's difficult to definitively state how this single contract compares. However, it aligns with the expectation that agencies rely heavily on robust communication networks, necessitating significant financial commitments.

What specific types of wired telecommunications services are included in this $60 million contract?

The provided data identifies the North American Industry Classification System (NAICS) code 517110 as 'Wired Telecommunications Carriers.' This suggests the contract covers services such as dedicated internet access, voice over IP (VoIP), traditional landline services, private line services, and potentially broadband internet access delivered via wired infrastructure. The specific breakdown of services, including bandwidth requirements, service level agreements (SLAs), and geographic coverage within Arkansas, would be detailed in the contract's statement of work (SOW). These details are crucial for understanding the full scope and value proposition of the award.

How does the pricing of this contract benchmark against similar telecommunications contracts awarded to Lumen Technologies or other providers by federal agencies?

Benchmarking the pricing of this $60 million contract requires access to a database of comparable federal telecommunications contracts, including their pricing structures, service levels, and durations. Factors such as the specific services rendered (e.g., bandwidth, type of connection), geographic location, and contract type (firm fixed-price) significantly influence pricing. While Lumen Technologies is a major provider, comparing their rates on this contract to others awarded under similar conditions would reveal if the VA secured competitive pricing. Without such comparative data, it's challenging to definitively assess if the price is optimal, though the full and open competition suggests an effort to achieve market-based rates.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract to ensure service quality?

Key performance indicators (KPIs) and service level agreements (SLAs) are critical components of any telecommunications contract to ensure the quality and reliability of services. While not detailed in the summary data, these would typically be outlined in the contract's Statement of Work (SOW). For wired telecommunications, common SLAs include metrics for network uptime (e.g., 99.99% availability), latency (delay in data transmission), jitter (variation in delay), and packet loss. KPIs might track the number of service outages, resolution times for reported issues, and adherence to bandwidth commitments. The VA would monitor these metrics to ensure Lumen Technologies meets its contractual obligations.

What is Lumen Technologies' track record with the Department of Veterans Affairs and other federal agencies regarding telecommunications services?

Lumen Technologies, and its predecessor entities, have a significant history of providing telecommunications and IT services to the federal government, including the Department of Veterans Affairs. Their track record typically involves managing large-scale network infrastructure, providing connectivity solutions, and supporting critical government operations. Past performance evaluations, available through federal procurement databases (like the Contractor Performance Assessment Reporting System - CPARS), would offer insights into their reliability, quality of service, and responsiveness on previous contracts. Generally, established providers like Lumen are chosen for their proven capabilities in handling complex government requirements.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lumen Technologies, Inc

Address: 4250 FAIRFAX DR, ARLINGTON, VA, 22203

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $59,846,515

Exercised Options: $59,846,515

Current Obligation: $59,846,515

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T07NSD0002

IDV Type: IDC

Timeline