DHS OIG Awards $3.78M for Network and Data Services to Lumen Technologies

Contract Overview

Contract Amount: $3,780,700 ($3.8M)

Contractor: Lumen Technologies Government Solutions, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-05-25

End Date: 2032-07-30

Contract Duration: 3,719 days

Daily Burn Rate: $1.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: IT

Official Description: DHS, OIG, OCIO ENTERPRISE INFRASTRUCTURE SOLUTIONS NETWORK AND DATA SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3.8 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. for work described as: DHS, OIG, OCIO ENTERPRISE INFRASTRUCTURE SOLUTIONS NETWORK AND DATA SERVICES Key points: 1. Contract awarded to Lumen Technologies for enterprise infrastructure solutions. 2. The contract has a long duration, spanning over 10 years. 3. Fixed Price with Economic Price Adjustment (FPEPA) contract type may lead to cost fluctuations. 4. The specific network and data services are crucial for OIG operations.

Value Assessment

Rating: fair

The contract value of $3.78 million over 10 years suggests a moderate annual spend. Benchmarking against similar wired telecommunications carrier contracts would be necessary to assess if this pricing is competitive, especially considering the FPEPA clause.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: The use of full and open competition is a positive for taxpayers, as it aims to secure the best value through market forces.

Public Impact

Ensures continued operational support for DHS OIG's critical network and data infrastructure. Long-term contract provides stability for service delivery but requires ongoing monitoring for value. Potential for cost increases due to the economic price adjustment clause needs careful management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (10+ years) increases risk of price escalation and vendor lock-in.
FPEPA clause introduces uncertainty in final costs.
Lack of specific performance metrics or KPIs in provided data.

Positive Signals

Awarded under full and open competition.
Supports critical infrastructure for an oversight agency.

Sector Analysis

The Wired Telecommunications Carriers sector (NAICS 517110) encompasses services like broadband internet and private line services. Spending in this sector can vary widely based on agency needs, with long-term contracts often used for stable infrastructure requirements.

Small Business Impact

The data indicates the award went to Lumen Technologies Government Solutions, Inc., a large business. There is no explicit indication of small business participation in this specific award.

Oversight & Accountability

The contract is managed by the Department of Homeland Security (DHS) and awarded to its Office of the Inspector General (OIG). Oversight would involve monitoring service delivery, adherence to contract terms, and managing the economic price adjustments.

Related Government Programs

Wired Telecommunications Carriers
Department of Homeland Security Contracting
Office of the Inspector General Programs

Risk Flags

Long contract duration increases risk.
Economic Price Adjustment (EPA) clause.
Potential for vendor lock-in.
Lack of specific performance metrics.
No explicit small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.8 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC.. DHS, OIG, OCIO ENTERPRISE INFRASTRUCTURE SOLUTIONS NETWORK AND DATA 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 Homeland Security (Office of the Inspector General).

What is the total obligated amount?

The obligated amount is $3.8 million.

What is the period of performance?

Start: 2022-05-25. End: 2032-07-30.

What specific network and data services are included, and how do they align with the OIG's mission requirements?

The provided data does not detail the specific network and data services. Understanding these specifics is crucial to assess if the contract adequately supports the OIG's oversight functions, ensures data integrity, and facilitates secure communication. Without this detail, it's difficult to fully evaluate the necessity and effectiveness of the awarded services beyond general infrastructure support.

How will the economic price adjustment (EPA) be managed to mitigate potential cost overruns for taxpayers?

The EPA clause allows for price changes based on economic factors, potentially increasing the contract's total cost over its 10-year lifespan. Effective management requires clear indices for adjustment, regular reviews of the necessity and magnitude of price changes, and potentially negotiating caps on EPA increases to protect taxpayer funds from excessive inflation.

What performance metrics are in place to ensure Lumen Technologies delivers high-quality network and data services throughout the contract term?

The provided data does not specify performance metrics or Key Performance Indicators (KPIs). Robust performance metrics are essential to ensure the contractor meets service level agreements, maintains network uptime, and provides reliable data services. Without defined metrics and associated remedies for non-performance, the government's ability to ensure value and hold the vendor accountable is diminished.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

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: $18,028,164

Exercised Options: $5,607,701

Current Obligation: $3,780,700

Actual Outlays: $2,488,201

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