NASA's $9.1M Communications Backbone Contract with Lumen Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $9,086,323 ($9.1M)
Contractor: Lumen Technologies Government Solutions, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2019-04-01
End Date: 2026-09-30
Contract Duration: 2,739 days
Daily Burn Rate: $3.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: EIS - THE NASA COMMUNICATIONS PROGRAM (CP) BACKBONE CORE CONSISTS OF ACCESS ARRANGEMENTS AND OPTICAL WAVELENGTH SERVICES (OWS) WITH ETHERNET INTERFACES.
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203
State: Virginia Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $9.1 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. for work described as: EIS - THE NASA COMMUNICATIONS PROGRAM (CP) BACKBONE CORE CONSISTS OF ACCESS ARRANGEMENTS AND OPTICAL WAVELENGTH SERVICES (OWS) WITH ETHERNET INTERFACES. Key points: 1. The contract for NASA's Communications Program Backbone Core, valued at $9.1 million, utilizes Lumen Technologies for access arrangements and optical wavelength services. 2. While awarded under full and open competition, the specific impact on price discovery for these specialized services warrants further examination. 3. The contract's duration of over 7 years raises questions about potential price escalation and the need for ongoing value assessment. 4. The 'Wired Telecommunications Carriers' sector is highly competitive, suggesting potential for better pricing through more frequent re-competition or alternative solutions.
Value Assessment
Rating: fair
The contract value of $9.1 million over nearly 7 years for core telecommunications services appears reasonable but lacks specific benchmarks for optical wavelength services. Without detailed cost breakdowns or comparisons to similar government-wide contracts, it's difficult to definitively assess if NASA is receiving optimal pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the long duration of the contract may limit the agency's ability to capitalize on market shifts and potentially lower prices through more frequent competitive bidding.
Taxpayer Impact: The long-term nature of this contract, while providing stability, means taxpayers are committed to this pricing for an extended period. Without clear evidence of aggressive price negotiation or competitive pressure throughout the term, there's a risk of overpayment.
Public Impact
Essential communications infrastructure for NASA's operations relies on this contract, impacting mission-critical functions. The long-term commitment to a single provider could limit NASA's agility in adopting newer, potentially more cost-effective technologies. Taxpayers are funding a significant portion of NASA's operational backbone, making cost-efficiency a key concern.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to price stagnation.
- Lack of specific performance metrics for optical wavelength services.
- Potential for better pricing through more frequent competition.
Positive Signals
- Awarded under full and open competition.
- Provides essential, stable communications infrastructure.
- Fixed-price contract offers some budget predictability.
Sector Analysis
The contract falls within the Wired Telecommunications Carriers sector, which is characterized by significant infrastructure investment and evolving technologies. Government spending in this area often involves long-term contracts to ensure network stability and reliability, but also carries the risk of technological obsolescence and price inefficiencies if not actively managed.
Small Business Impact
The data indicates this contract was not awarded to a small business. While large telecommunications providers are often necessary for complex infrastructure, opportunities for small businesses in related support or specialized services should be explored to foster broader competition and innovation.
Oversight & Accountability
The contract's long duration necessitates robust oversight to ensure continued value and performance. NASA should actively monitor service delivery, track market trends, and explore opportunities for re-competition or contract modification to mitigate risks associated with long-term commitments.
Related Government Programs
- Wired Telecommunications Carriers
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Long contract duration may not reflect current market prices.
- Lack of detailed performance benchmarks for specialized services.
- Potential for vendor lock-in with critical infrastructure.
- Limited visibility into cost components of optical wavelength services.
Tags
wired-telecommunications-carriers, national-aeronautics-and-space-administr, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $9.1 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC.. EIS - THE NASA COMMUNICATIONS PROGRAM (CP) BACKBONE CORE CONSISTS OF ACCESS ARRANGEMENTS AND OPTICAL WAVELENGTH SERVICES (OWS) WITH ETHERNET INTERFACES.
Who is the contractor on this award?
The obligated recipient is LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC..
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $9.1 million.
What is the period of performance?
Start: 2019-04-01. End: 2026-09-30.
What specific metrics are used to evaluate the performance and value of the optical wavelength services provided by Lumen?
The provided data does not specify the performance metrics for the optical wavelength services. A thorough review would require access to the contract's statement of work and performance standards. Understanding these metrics is crucial for assessing whether NASA is receiving the contracted level of service and if the pricing aligns with the delivered value, especially given the specialized nature of OWS.
How does NASA ensure competitive pricing for telecommunications services over a contract period exceeding seven years?
While the contract was initially awarded through full and open competition, its extended duration (2019-2026) raises questions about ongoing price competitiveness. NASA should have mechanisms in place, such as periodic market research, price analysis clauses, or options for re-competition, to ensure that pricing remains fair and reflects current market conditions throughout the contract's life.
What is the potential impact of this long-term contract on NASA's ability to adopt emerging telecommunications technologies?
A long-term contract for core infrastructure can sometimes create inertia, making it more challenging and costly to adopt newer technologies. NASA needs to ensure the contract allows for flexibility or that they have a clear strategy for transitioning to advanced solutions post-contract. This includes assessing if the current services are hindering innovation or if there are built-in upgrade paths.
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: 4
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: $11,905,223
Exercised Options: $9,971,505
Current Obligation: $9,086,323
Actual Outlays: $7,769,033
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
Start Date: 2019-04-01
Current End Date: 2026-09-30
Potential End Date: 2028-09-30 00:00:00
Last Modified: 2026-04-07
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