VA awards $50.9M for wired telecommunications, Lumen Technologies secures contract

Contract Overview

Contract Amount: $50,930,011 ($50.9M)

Contractor: Lumen Technologies Government Solutions, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-10-01

End Date: 2023-03-31

Contract Duration: 546 days

Daily Burn Rate: $93.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TPO NETWORX LUMEN - CIRCUITS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $50.9 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC for work described as: TPO NETWORX LUMEN - CIRCUITS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 546 days indicates a medium-term service requirement. 3. Firm Fixed Price contract type helps manage cost certainty for the agency. 4. The primary NAICS code (517110) points to services within the telecommunications sector. 5. Awarded by the Department of Veterans Affairs, likely supporting critical veteran services. 6. The contract value is substantial, reflecting significant telecommunications infrastructure needs.

Value Assessment

Rating: good

The contract value of $50.9 million over approximately 18 months appears reasonable for comprehensive wired telecommunications services. Benchmarking against similar large-scale telecommunications contracts awarded by federal agencies suggests this pricing is within expected ranges, especially considering the scope of services likely provided to the Department of Veterans Affairs. The firm fixed-price structure provides cost predictability, which is a positive indicator for value.

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 bids. The presence of 3 bidders suggests a healthy level of competition for this telecommunications requirement. This competitive environment is generally favorable for price discovery and ensures the government receives offers from multiple providers, potentially leading to better pricing and service options.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government's investment in telecommunications infrastructure.

Public Impact

Veterans will benefit from reliable and robust telecommunications services essential for accessing healthcare and administrative support. The Department of Veterans Affairs will receive critical network infrastructure to support its nationwide operations. The contract supports the telecommunications sector workforce, including engineers, technicians, and support staff. Geographic impact is likely nationwide, supporting VA facilities across the country.

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 vendor for critical infrastructure could pose a risk if the vendor experiences financial or operational difficulties.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm Fixed Price contract type provides cost certainty and limits the government's exposure to cost overruns.
The contract is with a well-established telecommunications provider with a significant presence in government contracting.

Sector Analysis

This contract falls within the Wired Telecommunications Carriers industry, a sector characterized by significant infrastructure investment and ongoing technological evolution. The market is dominated by a few large players, including Lumen Technologies. Federal spending in this area is crucial for maintaining secure and reliable communication networks for government operations. Comparable spending benchmarks for large federal telecommunications contracts often range in the tens to hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements. This suggests that the primary award went to a large business. The absence of set-aside provisions means that opportunities for small businesses would likely be through subcontracting, if mandated or pursued by the prime contractor.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. As a Delivery Order under a larger contract vehicle, oversight would typically involve contract specialists and program managers within the VA. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Telecommunications Services
Network Infrastructure
Wired Communications
Government IT Services

Risk Flags

Potential for service disruption
Cybersecurity risks
Vendor financial stability

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $50.9 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. TPO NETWORX LUMEN - CIRCUITS

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 $50.9 million.

What is the period of performance?

Start: 2021-10-01. End: 2023-03-31.

What is the historical spending pattern of the Department of Veterans Affairs on wired telecommunications services?

The Department of Veterans Affairs (VA) has consistently allocated significant funds towards telecommunications services to support its vast network of healthcare facilities and administrative offices. Historical data reveals a trend of substantial investment in maintaining and upgrading its communication infrastructure. For instance, in recent fiscal years, the VA has awarded numerous contracts for various telecommunications needs, ranging from local area networks to wide area network services. The total annual spending can fluctuate based on major infrastructure projects, technology refresh cycles, and specific program requirements. While this specific $50.9 million contract represents a notable award, it is part of a broader, ongoing commitment by the VA to ensure reliable connectivity for its operations and the services it provides to veterans. Analyzing aggregated spending data over multiple years would provide a clearer picture of the VA's long-term investment strategy in this critical area.

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

Benchmarking the pricing of this $50.9 million contract requires a detailed analysis of the specific services rendered, contract duration, and the prevailing market rates at the time of award. However, given that it was awarded under full and open competition with three bidders, it suggests that Lumen Technologies' pricing was competitive. Generally, large-scale telecommunications contracts for federal agencies, especially those involving extensive network infrastructure and support, can range from tens to hundreds of millions of dollars. The firm fixed-price nature of this contract also implies a degree of cost certainty. Without access to the specific service level agreements and detailed pricing breakdowns, a precise comparison is challenging. However, the competitive award process and the established nature of the contractor suggest that the pricing is likely aligned with market expectations for similar government procurements.

What are the potential risks associated with relying on Lumen Technologies for these critical telecommunications services?

Potential risks associated with relying on Lumen Technologies for critical telecommunications services include vendor viability, service disruptions, and cybersecurity vulnerabilities. As a large, established company, Lumen Technologies has a significant market presence, but like any major corporation, it faces risks related to financial stability, operational efficiency, and potential mergers or acquisitions that could alter service delivery. Service disruptions, whether due to technical failures, natural disasters, or human error, could impact the VA's ability to function. Furthermore, the security of the network infrastructure is paramount; any breach or vulnerability in Lumen's systems could have serious consequences for sensitive veteran data and operational continuity. The government typically mitigates these risks through robust Service Level Agreements (SLAs), performance monitoring, contingency planning, and cybersecurity requirements stipulated in the contract.

What is the track record of Lumen Technologies in fulfilling federal telecommunications contracts?

Lumen Technologies, and its predecessor entities like CenturyLink, has a substantial track record of fulfilling federal telecommunications contracts across various agencies. They are a major player in the government contracting space, particularly for large-scale network services, including managed network services, dedicated internet access, and private line services. Their experience spans decades, and they have been awarded numerous significant contracts with agencies such as the Department of Defense, the General Services Administration (GSA), and, as seen here, the Department of Veterans Affairs. While specific performance metrics for every contract are not publicly detailed, their continued success in winning competitive bids and securing multi-year awards indicates a generally positive performance history. However, like any large contractor, there may be instances of performance issues or disputes on specific contracts, which are often addressed through contract management and dispute resolution processes.

How does this contract align with the Department of Veterans Affairs' broader IT modernization and digital transformation goals?

This contract for wired telecommunications services directly supports the Department of Veterans Affairs' broader IT modernization and digital transformation goals by providing the foundational network infrastructure necessary for advanced digital services. Reliable, high-speed connectivity is essential for implementing new technologies such as telehealth platforms, electronic health records modernization, cloud computing initiatives, and enhanced data analytics capabilities. By ensuring robust wired telecommunications, the VA can better support its mission-critical applications, improve data sharing across its facilities, and enhance the digital experience for both veterans and staff. This contract is a key enabler, allowing the VA to move forward with its strategic objectives of leveraging technology to improve healthcare delivery, streamline administrative processes, and provide more accessible services to veterans nationwide.

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 - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: TQC-JTB-05-0001 -D

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lumen Technologies, Inc

Address: 4250 N FAIRFAX DRIVE, ARLINGTON, VA, 22203

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $50,930,011

Exercised Options: $50,930,011

Current Obligation: $50,930,011

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T07NSD0002

IDV Type: IDC

Timeline