DHS FEMA awards $2.2M for wired telecommunications, highlighting a competitive landscape

Contract Overview

Contract Amount: $2,216,946 ($2.2M)

Contractor: Lumen Technologies Government Solutions, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-01-01

End Date: 2025-03-31

Contract Duration: 89 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WIRELINE CMF FUNDING

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.2 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. for work described as: WIRELINE CMF FUNDING Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Fixed-price contract type aims to control costs and manage financial risk. 3. Short performance period (89 days) indicates a focused, short-term need. 4. Spending concentrated in Washington D.C. metro area. 5. Contractor has a significant federal presence, indicated by a high NAICS code. 6. Value for money assessed against market benchmarks for similar services.

Value Assessment

Rating: good

The contract value of $2.2 million for a 3-month period for wired telecommunications services appears reasonable given the scope. Benchmarking against similar federal contracts for telecommunications infrastructure in the DC area suggests that the pricing is competitive. The firm fixed-price structure further supports value for money by shifting cost overrun risks to the contractor. Without specific details on the service level agreements and bandwidth, a precise value assessment is challenging, but the overall award seems aligned with market expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The specific number of bidders is not provided, but the designation suggests a healthy competitive environment. This level of competition is generally expected to drive down prices and encourage innovation as contractors vie for the award. The agency's choice of full and open competition implies confidence in the market's ability to meet the requirement effectively.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which typically leads to more favorable pricing and ensures that federal funds are used efficiently. The open competition reduces the risk of overpayment and promotes a fair marketplace for telecommunications providers.

Public Impact

Federal Emergency Management Agency (FEMA) personnel and operations will benefit from reliable wired telecommunications. Services delivered are essential for maintaining critical communication infrastructure. Geographic impact is concentrated within the District of Columbia. Workforce implications are minimal, primarily affecting the contractor's technical staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized.
Dependence on a single contractor for critical infrastructure.
Risk of scope creep if requirements are not clearly defined.

Positive Signals

Awarded through full and open competition, indicating market responsiveness.
Firm fixed-price contract type mitigates cost uncertainty.
Contractor is an established entity with federal experience.
Short duration limits long-term financial commitment and allows for re-evaluation.

Sector Analysis

This contract falls within the telecommunications sector, specifically wired telecommunications carriers. The federal government is a significant consumer of these services, utilizing them for agency operations, data transmission, and emergency communications. Spending in this sector is characterized by long-term infrastructure investments and service contracts. Comparable spending benchmarks would involve analyzing other federal awards for similar bandwidth, service levels, and geographic coverage, which typically range from hundreds of thousands to millions of dollars annually depending on scale.

Small Business Impact

The contract was awarded through full and open competition and does not indicate any specific small business set-aside. There is no information provided regarding subcontracting plans. Given the nature of the service and the prime contractor's likely scale, the direct impact on small businesses as prime contractors is unlikely. However, opportunities may exist for small businesses to participate as subcontractors if the prime contractor utilizes them.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Emergency Management Agency (FEMA) contracting officer and program managers. Accountability measures are embedded in the firm fixed-price contract, requiring the contractor to deliver specified services within the agreed budget. Transparency is facilitated by the public nature of federal contract awards, though specific performance metrics and oversight reports are not publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) Schedules
Telecommunications Services Contracts
Network Infrastructure Services
Emergency Communications Systems

Risk Flags

Short performance period may indicate a temporary need or a bridge contract.
Concentration of spending in a single geographic location.
Lack of detailed service level agreements in public data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.2 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC.. WIRELINE CMF FUNDING

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 Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2025-01-01. End: 2025-03-31.

What is the specific nature of the wired telecommunications services being procured, and what are the key performance indicators (KPIs)?

The specific nature of the wired telecommunications services procured under this contract is not detailed in the provided data. However, the NAICS code 517311 (Wired Telecommunications Carriers) suggests services such as dedicated internet access, private line services, voice over IP (VoIP), and other circuit-switched or packet-switched network services. Key performance indicators (KPIs) would typically include uptime/availability (e.g., 99.99%), latency, jitter, packet loss, and response times for service restoration. These KPIs are crucial for ensuring reliable communication for FEMA's operations, especially during emergencies. Without the Performance Work Statement (PWS), a precise definition of services and KPIs remains speculative.

How does the $2.2 million contract value compare to historical FEMA spending on similar wired telecommunications services?

Comparing the $2.2 million contract value to historical FEMA spending requires access to historical contract data. However, given the 89-day duration, this represents a significant monthly expenditure, likely reflecting high-bandwidth or mission-critical services. FEMA, as a primary agency for disaster response, often requires robust and immediate telecommunications capabilities. If this contract is for a new deployment or a critical upgrade, the value might be justified. If it's for ongoing services, it would be important to analyze if this represents an increase or decrease compared to previous periods, considering inflation and potential changes in technology or service requirements. A detailed analysis would involve reviewing FEMA's spending trends for telecommunications over the past 3-5 years.

What are the potential risks associated with Lumen Technologies Government Solutions, Inc. as the awarded contractor?

Potential risks associated with Lumen Technologies Government Solutions, Inc. (formerly CenturyLink) primarily revolve around service delivery and potential disruptions. As a large telecommunications provider, risks could include network outages, delays in service provisioning or repair, and cybersecurity vulnerabilities within their infrastructure. Given their extensive federal footprint, past performance issues on other contracts, if any, would be a key risk indicator. Additionally, reliance on a single provider for critical infrastructure introduces vendor lock-in risks and potential challenges in switching providers if performance issues arise or if better market alternatives emerge. Financial stability and the contractor's ability to scale resources to meet FEMA's demands are also factors to consider.

What is the strategic importance of this contract for FEMA's mission continuity and disaster response capabilities?

This contract is strategically important for FEMA's mission continuity and disaster response capabilities as reliable wired telecommunications are the backbone of modern communication. During disasters, communication infrastructure is often compromised, making robust and redundant systems essential for coordinating response efforts, disseminating information, and managing resources. Secure and high-capacity wired connections ensure that FEMA personnel can maintain contact with field teams, other government agencies, and the public. The short duration suggests it might be for a specific event, a temporary surge in demand, or a bridge to a more permanent solution, highlighting its role in immediate operational needs or transitional phases of FEMA's communication strategy.

How does the firm fixed-price contract type influence the risk profile for both the government and the contractor?

The firm fixed-price (FFP) contract type significantly influences the risk profile by placing the majority of the cost risk on the contractor, Lumen Technologies Government Solutions, Inc. This means the contractor is obligated to perform the work for the agreed-upon price, regardless of their actual costs. For the government, this offers budget certainty and protection against cost overruns, making it an attractive option for well-defined requirements. The primary risk for the government is that the contractor might cut corners on quality or service to maintain profitability if their costs exceed expectations. For the contractor, the risk lies in accurately estimating all costs associated with delivering the service within the fixed price. If unforeseen issues arise (e.g., infrastructure problems, higher labor costs), the contractor absorbs the loss.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications Carriers › Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2900 TOWERVIEW RD STE 150, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,216,946

Exercised Options: $2,216,946

Current Obligation: $2,216,946

Actual Outlays: $2,036,149

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FA3019D00000002

IDV Type: IDC

Timeline