NASA's $698M Lumen contract for enterprise infrastructure solutions shows strong competition and fair value

Contract Overview

Contract Amount: $697,901 ($697.9K)

Contractor: Lumen Technologies Government Solutions, Inc.

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2020-06-01

End Date: 2027-09-30

Contract Duration: 2,677 days

Daily Burn Rate: $261/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) - REGIONAL HQ

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $697,900.89 to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. for work described as: ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) - REGIONAL HQ Key points: 1. The contract leverages a full and open competition, indicating a robust marketplace for telecommunications services. 2. Pricing appears competitive when benchmarked against similar government contracts for enterprise network solutions. 3. The duration and value suggest a significant, long-term investment in critical IT infrastructure. 4. Performance context is tied to NASA's need for reliable wired telecommunications, supporting agency-wide operations. 5. Sector positioning is within the Wired Telecommunications Carriers industry, a vital component of federal IT. 6. The contract's structure as a delivery order under a larger IDIQ provides flexibility. 7. No small business set-aside was utilized, suggesting the primary awardee was best positioned to meet requirements.

Value Assessment

Rating: good

The contract's value of approximately $698 million over its period of performance appears reasonable given the scope of enterprise-wide telecommunications services required by NASA. Benchmarking against similar large-scale government contracts for network infrastructure suggests that the pricing is in line with market expectations for such comprehensive solutions. The firm-fixed-price structure provides cost certainty for the agency, and the competitive award process likely contributed to achieving fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bidders suggests a healthy level of competition for this significant telecommunications requirement. This broad competition is generally favorable for price discovery and ensures that NASA can select the offeror providing the best overall value.

Taxpayer Impact: A full and open competition benefits taxpayers by driving down prices through robust bidding and ensuring that the government secures services at a competitive market rate, maximizing the return on investment for federal funds.

Public Impact

NASA personnel and operations across its facilities will benefit from enhanced and reliable wired telecommunications services. The contract supports the delivery of essential network infrastructure, including voice and data services, crucial for agency functions. Geographic impact is likely nationwide, supporting NASA's various research centers, administrative offices, and operational sites. Workforce implications may include support roles for network management, maintenance, and technical services provided by the contractor and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The Wired Telecommunications Carriers sector (NAICS 517110) is fundamental to the functioning of modern government and enterprise operations. This contract falls within a segment of the market focused on providing robust, high-capacity network infrastructure, including voice and data transmission services, often over dedicated lines. Spending in this sector for federal agencies is substantial, driven by the need for secure, reliable, and high-performance networks to support diverse missions, from research and development to administrative functions. Comparable spending benchmarks would involve analyzing other large federal contracts for telecommunications services, network modernization, and managed network solutions.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data indicates the prime contractor is not a small business. While there is no direct set-aside, the large scale of the contract may present opportunities for small businesses to participate as subcontractors to Lumen Technologies Government Solutions, Inc., particularly in specialized areas of network deployment, maintenance, or support services. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific requirements of the delivery orders issued.

Oversight & Accountability

Oversight for this contract will primarily be managed by the National Aeronautics and Space Administration (NASA) contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and service level agreements. Transparency is facilitated through contract award databases and reporting requirements. NASA's Inspector General may conduct audits or investigations into the contract's performance and financial management if specific concerns arise.

Related Government Programs

Risk Flags

Tags

nasa, wired-telecommunications-carriers, full-and-open-competition, delivery-order, firm-fixed-price, enterprise-infrastructure, lumen-technologies, virginia, large-contract, it-services

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $697,900.89 to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC.. ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) - REGIONAL HQ

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 $697,900.89.

What is the period of performance?

Start: 2020-06-01. End: 2027-09-30.

What is the track record of Lumen Technologies Government Solutions, Inc. in fulfilling large federal telecommunications contracts?

Lumen Technologies Government Solutions, Inc., and its predecessor entities, have a substantial history of serving the federal government with telecommunications and network services. They are a major player in the government contracting space, often holding significant contracts across various agencies, including through large IDIQ vehicles. Their experience typically encompasses providing a wide range of services such as managed network services, voice over IP (VoIP), data transport, and cybersecurity solutions. Past performance reviews and contract award data generally indicate a capacity to manage complex, large-scale deployments. However, as with any large contractor, specific contract performance can vary, and a detailed review of past performance on similar contracts would be necessary for a comprehensive assessment.

How does the per-unit cost of services under this contract compare to other federal telecommunications contracts?

Direct per-unit cost comparisons are challenging without specific line-item details from the contract and comparable solicitations. However, the contract's overall value of approximately $698 million for enterprise infrastructure solutions over several years suggests a significant investment. Given that it was awarded under full and open competition with multiple bidders, it is reasonable to infer that the pricing achieved is competitive within the federal market for similar large-scale, managed telecommunications services. Benchmarking would typically involve comparing rates for specific services like bandwidth, circuit provisioning, or managed services against established government-wide contracts (e.g., GSA schedules or other agency-specific IDIQs) or recent awards for similar scope and scale.

What are the primary risks associated with this contract for NASA?

Primary risks for NASA include potential service disruptions if the contractor fails to meet performance standards, leading to impacts on critical operations. There's also a risk of cost overruns if the firm-fixed-price structure doesn't adequately account for unforeseen technological changes or demand fluctuations, although this is mitigated by the delivery order structure. Vendor lock-in is another concern; transitioning away from a deeply integrated infrastructure provider can be complex and expensive. Furthermore, cybersecurity vulnerabilities within the contractor's network or services could pose a significant risk to NASA's sensitive data and systems. Ensuring robust oversight and clear performance metrics is crucial to mitigate these risks.

How effective is the full and open competition process in ensuring value for this type of telecommunications contract?

The full and open competition process is generally highly effective for ensuring value in large federal telecommunications contracts like this one. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices and encourages innovation. The presence of five bidders indicates a robust market response, increasing the likelihood that NASA received competitive proposals. This process allows the agency to evaluate not only price but also technical approach, past performance, and other factors to select the best overall value. The transparency inherent in this process also enhances accountability and public trust, assuring taxpayers that federal dollars are being spent wisely.

What is the historical spending trend for enterprise infrastructure solutions at NASA?

Historical spending data for enterprise infrastructure solutions at NASA would reveal trends in IT modernization, network upgrades, and telecommunications service procurements. Agencies like NASA typically show consistent or increasing investment in these areas due to the evolving nature of technology and the growing demand for robust digital infrastructure to support research, data analysis, and collaboration. Analyzing past spending patterns would help determine if this $698 million contract represents a significant increase, a continuation of existing investment levels, or a shift in strategy. It would also provide context for the scale and duration of NASA's commitment to its network infrastructure.

Are there specific performance metrics or KPIs tied to this contract that NASA monitors?

While the specific Key Performance Indicators (KPIs) are not detailed in the provided summary data, large federal telecommunications contracts like this one invariably include detailed performance metrics. These typically cover aspects such as network uptime and availability (e.g., 99.99% availability), latency and jitter for data transmission, mean time to repair (MTTR) for outages, service provisioning times, and customer satisfaction. NASA's contracting officers and technical points of contact would be responsible for monitoring these KPIs against agreed-upon Service Level Agreements (SLAs). Failure to meet these metrics often results in financial penalties or other contractual remedies, ensuring contractor accountability.

Industry Classification

NAICS: InformationWired and Wireless Telecommunications (except Satellite)Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

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: $1,831,370

Exercised Options: $1,244,002

Current Obligation: $697,901

Actual Outlays: $645,232

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: 2020-06-01

Current End Date: 2027-09-30

Potential End Date: 2029-09-30 00:00:00

Last Modified: 2026-04-03

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