NSF awards $4.9M for telecommunications, Lumen Technologies secures contract

Contract Overview

Contract Amount: $4,906,435 ($4.9M)

Contractor: Lumen Technologies Government Solutions, Inc.

Awarding Agency: National Science Foundation

Start Date: 2022-04-08

End Date: 2026-11-08

Contract Duration: 1,675 days

Daily Burn Rate: $2.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NSF TELECOMMUNICATIONS TRANSITION

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

National Science Foundation obligated $4.9 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. for work described as: NSF TELECOMMUNICATIONS TRANSITION Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1675 days indicates a long-term need for telecommunications services. 3. The fixed-price contract type may offer cost certainty for the agency. 4. The award to Lumen Technologies, a known provider, suggests a focus on established capabilities. 5. The North American Industry Classification System (NAICS) code 517110 points to services within the wired telecommunications carriers sector. 6. The contract is managed by the National Science Foundation (NSF), a key research funding agency.

Value Assessment

Rating: fair

The total award amount of $4.9 million over approximately 4.6 years averages to about $1.06 million annually. Benchmarking this against similar telecommunications contracts for federal agencies is challenging without more specific service details. However, given the duration and the nature of telecommunications infrastructure, the pricing appears within a reasonable range for a large federal agency like the NSF. Further analysis would require comparing specific service level agreements and bandwidth provisions against market rates.

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 data does not specify the number of bidders, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: A competitive bidding process like full and open competition is generally favorable for taxpayers as it is expected to drive down costs and improve the quality of services received by the government.

Public Impact

The National Science Foundation benefits from reliable telecommunications infrastructure to support its research and administrative operations. Researchers and staff utilizing NSF facilities and resources will have access to necessary communication services. The contract supports the operational continuity of NSF's mission to promote the progress of science. The geographic impact is primarily centered around NSF facilities and operations, likely within Virginia where the contract is managed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the telecommunications services provided.
The duration of the contract (over 4 years) means potential for price increases or service obsolescence if not managed proactively.
Without knowing the number of bidders, it's hard to definitively say if the competition was robust enough to secure the best possible pricing.

Positive Signals

Awarded through full and open competition, which typically leads to better value.
The firm fixed-price contract type provides cost predictability for the agency.
The contract is with a known entity, Lumen Technologies, suggesting a level of established capability and reliability.

Sector Analysis

The telecommunications sector is a critical component of federal IT infrastructure, encompassing services like wired and wireless communication, internet access, and data transmission. Federal spending in this area is substantial, supporting agency operations, research, and national security. This contract for wired telecommunications services falls under the broader IT and telecommunications market, which is characterized by rapid technological advancements and a mix of large established providers and specialized niche players. Benchmarking requires understanding the specific services procured, such as dedicated lines, bandwidth, and network management, against industry standards for government contracts.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. This suggests that the primary focus was on securing the most capable provider through open competition, rather than specifically targeting small businesses. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting this telecommunications need.

Oversight & Accountability

The National Science Foundation, as the awarding agency, is responsible for the oversight of this contract. The firm fixed-price nature of the contract provides a degree of financial oversight by locking in costs. Transparency would be enhanced by public reporting of performance metrics and any modifications to the contract. Inspector General jurisdiction would typically apply to investigations of fraud, waste, or abuse related to federal contracts.

Related Government Programs

Federal Telecommunications Services
IT Infrastructure Modernization
Network Services Contracts
Research and Development Support Services

Risk Flags

Potential for technological obsolescence over the contract duration.
Lack of detailed performance metrics makes value assessment difficult.
Limited insight into the number of bidders impacts competition robustness assessment.

Frequently Asked Questions

What is this federal contract paying for?

National Science Foundation awarded $4.9 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC.. NSF TELECOMMUNICATIONS TRANSITION

Who is the contractor on this award?

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

Which agency awarded this contract?

Awarding agency: National Science Foundation (National Science Foundation).

What is the total obligated amount?

The obligated amount is $4.9 million.

What is the period of performance?

Start: 2022-04-08. End: 2026-11-08.

What specific telecommunications services are included under this $4.9 million contract?

The provided data identifies the contract under NAICS code 517110 (Wired Telecommunications Carriers) and specifies the awarding agency as the National Science Foundation (NSF). However, it does not detail the specific services encompassed by the $4.9 million award. These services likely include the provision and maintenance of wired telecommunications infrastructure, such as dedicated internet access, private lines, voice services, and potentially data networking solutions necessary for NSF's operations. Without a detailed statement of work or service level agreement, it is difficult to ascertain the exact nature and scope of the telecommunications capabilities being procured. Understanding these specifics is crucial for a comprehensive value assessment and comparison to market rates.

How does the annual cost of this contract compare to similar telecommunications spending by other federal agencies?

The total contract value is approximately $4.9 million over a period of 1675 days (roughly 4.6 years), equating to an average annual expenditure of about $1.06 million. Direct comparison to similar telecommunications contracts across federal agencies is complex due to variations in service scope, geographic reach, bandwidth requirements, and service level agreements. Agencies like the General Services Administration (GSA) manage large telecommunications vehicles that might offer aggregated pricing. However, for a specific agency like NSF, the cost is likely influenced by its unique operational needs and the specific network infrastructure required. A precise benchmark would necessitate a detailed analysis of the services procured against industry pricing for comparable federal contracts, considering factors like dedicated circuits versus shared services and the level of support required.

What is Lumen Technologies' track record with federal telecommunications contracts?

Lumen Technologies (formerly CenturyLink) has a significant history of providing telecommunications and IT services to the U.S. federal government. They are a major player in the telecommunications market and hold numerous contracts across various agencies, often through large government-wide acquisition contracts (GWACs) or specific solicitations. Their experience typically includes providing a wide range of services such as managed network services, dedicated internet access, cloud connectivity, and cybersecurity solutions. While this specific contract is a delivery order, it builds upon Lumen's established presence and capabilities within the federal space. Agencies often select providers like Lumen based on their demonstrated ability to meet stringent security requirements, provide reliable service, and manage complex networks at scale.

What are the potential risks associated with a long-term telecommunications contract like this?

Long-term telecommunications contracts, such as this 4.6-year agreement, carry several potential risks. Technological obsolescence is a primary concern; telecommunications technology evolves rapidly, and a contract locked in for several years might not incorporate the latest, most efficient, or cost-effective solutions. Price escalation is another risk, particularly if the contract includes provisions for price adjustments or if market rates decrease significantly over the contract's life. Vendor lock-in can occur, making it difficult and costly to switch providers even if performance is subpar or better options emerge. Furthermore, changes in agency requirements or budget constraints could necessitate contract modifications or early termination, potentially incurring penalties. Ensuring flexibility and incorporating regular performance reviews are key mitigation strategies.

How does the firm fixed-price contract type benefit the National Science Foundation?

The firm fixed-price (FFP) contract type offers significant benefits to the National Science Foundation (NSF) by providing cost certainty and predictability. Under an FFP contract, the price is set and not subject to adjustment based on the contractor's cost experience. This means the NSF knows the exact amount it will pay Lumen Technologies for the defined telecommunications services throughout the contract period, assuming no scope changes. This structure shifts the risk of cost overruns entirely to the contractor, incentivizing Lumen Technologies to manage its expenses efficiently. For an agency like NSF, which relies on predictable budgeting for its research and operational activities, the FFP structure simplifies financial planning and reduces the risk of unexpected cost increases impacting its core mission.

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: 49100420Q0040

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: $5,655,749

Exercised Options: $4,906,435

Current Obligation: $4,906,435

Actual Outlays: $4,095,777

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