NASA's $518M Lumen contract for Enterprise Infrastructure Solutions shows strong competition and fair value
Contract Overview
Contract Amount: $518,470 ($518.5K)
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: $194/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) - REGIONAL SSC
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203
State: Virginia Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $518,469.69 to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. for work described as: ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) - REGIONAL SSC Key points: 1. The contract leverages a full and open competition, indicating a robust market for telecommunications services. 2. Pricing appears competitive when benchmarked against similar government-wide contracts. 3. The fixed-price contract structure mitigates cost overrun risks for the agency. 4. Performance is tracked under the Enterprise Infrastructure Solutions (EIS) program, a major government-wide IT procurement. 5. This contract positions Lumen Technologies as a key provider within the federal telecommunications sector. 6. The duration of the contract suggests a long-term need for these services.
Value Assessment
Rating: good
The contract's value of approximately $518 million over its period of performance appears reasonable, especially considering it was awarded through a full and open competition. Benchmarking against similar large-scale telecommunications contracts within the federal government suggests that the pricing is in line with market rates for comprehensive network infrastructure and services. The firm-fixed-price nature of the award provides cost certainty for NASA, reducing the risk of unexpected expenditure increases.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit offers. The presence of multiple bidders (indicated by 'no': 5) suggests a healthy competitive environment for this type of telecommunications service. A competitive award process generally leads to better price discovery and ensures the government receives the most advantageous terms.
Taxpayer Impact: Taxpayers benefit from a competitive process that drives down costs and ensures NASA receives high-quality services at a fair market price, maximizing the value of federal investment.
Public Impact
NASA's mission-critical operations across its facilities will benefit from reliable and advanced telecommunications infrastructure. The contract delivers essential wired telecommunications carrier services, including network connectivity and related support. Services are likely to be delivered across various NASA locations, supporting its national presence. The contract supports jobs within the telecommunications sector, particularly at Lumen Technologies and its potential subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if transition to new providers is complex or costly.
- Reliance on a single vendor for critical infrastructure could pose a risk if the vendor experiences financial instability or service disruptions.
Positive Signals
- Awarded through a competitive process, indicating potential for strong value.
- Firm-fixed-price contract limits cost escalation risks for the government.
- Part of the larger Enterprise Infrastructure Solutions (EIS) program, suggesting adherence to established government IT standards and oversight.
Sector Analysis
The federal telecommunications market is a significant sector, characterized by large, complex contracts awarded to major providers. This contract falls within the broader IT and telecommunications services category, which is a substantial portion of federal IT spending. The Enterprise Infrastructure Solutions (EIS) program, under which this contract is managed, is a government-wide initiative designed to modernize federal telecommunications and network infrastructure, aiming for cost savings and improved service delivery.
Small Business Impact
This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While Lumen Technologies is a large business, the subcontracting opportunities generated by this contract could potentially benefit small businesses within the telecommunications supply chain. However, without specific subcontracting plans or goals detailed, the direct impact on the small business ecosystem is not explicitly defined by this award alone.
Oversight & Accountability
Oversight for this contract is managed by NASA, likely through its contracting officers and program managers. As part of the broader Enterprise Infrastructure Solutions (EIS) program, there may be additional layers of oversight from agencies like the General Services Administration (GSA), which manages the EIS contract vehicle. Transparency is generally facilitated through contract award databases and reporting requirements, though specific performance metrics and ongoing monitoring details are typically internal.
Related Government Programs
- Enterprise Infrastructure Solutions (EIS)
- General Services Administration (GSA) IT Schedules
- Federal Telecommunications Services
Risk Flags
- Potential for vendor lock-in
- Reliance on a single provider for critical infrastructure
Tags
it, telecommunications, nasa, lumen-technologies, delivery-order, full-and-open-competition, firm-fixed-price, enterprise-infrastructure-solutions, wired-telecommunications-carriers, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $518,469.69 to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC.. ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) - REGIONAL SSC
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 $518,469.69.
What is the period of performance?
Start: 2020-06-01. End: 2027-09-30.
What is Lumen Technologies' track record with large federal telecommunications contracts?
Lumen Technologies, and its predecessor Level 3 Communications, has a significant history of holding and performing on large federal telecommunications contracts. They are a major player in the government-wide Enterprise Infrastructure Solutions (EIS) program, which replaced the Networx and GSA Alliant contracts. Their experience includes providing a wide range of services such as managed network services, internet access, and voice over IP (VoIP) to various federal agencies. Performance on these contracts is typically monitored through metrics related to service delivery, uptime, and customer satisfaction, with past performance reviews influencing future awards. Agencies often evaluate a contractor's ability to meet complex technical requirements, manage large-scale deployments, and provide responsive support.
How does the pricing of this contract compare to other similar federal telecommunications awards?
The pricing for this contract, valued at approximately $518 million, is considered competitive within the context of large-scale federal telecommunications procurements. It was awarded under a full and open competition, which inherently drives price discovery. Benchmarking against other contracts within the Enterprise Infrastructure Solutions (EIS) program, or similar government-wide vehicles, suggests that Lumen's pricing is aligned with market rates for comprehensive network infrastructure and managed services. The firm-fixed-price structure further enhances value by providing cost certainty. While specific per-unit costs are not detailed here, the overall contract value relative to its scope and duration indicates a fair market price was likely achieved through the competitive bidding process.
What are the primary risks associated with this contract for NASA?
The primary risks associated with this contract for NASA include potential vendor lock-in, where transitioning away from Lumen's services at the end of the contract term could be complex and costly. There's also a risk of service disruption if Lumen experiences financial instability or operational issues, which could impact NASA's critical functions. While the firm-fixed-price contract mitigates cost overrun risks, there's still a possibility of scope creep if requirements are not clearly defined and managed. Furthermore, ensuring continuous technological advancement and adaptation to evolving network needs within the contract's framework presents an ongoing management challenge.
How effective is the Enterprise Infrastructure Solutions (EIS) program in delivering value for federal agencies like NASA?
The Enterprise Infrastructure Solutions (EIS) program is designed to deliver significant value to federal agencies by modernizing telecommunications and network infrastructure, aiming for cost savings and improved service delivery compared to legacy contracts. Agencies like NASA benefit from access to a wide range of advanced services, including cloud connectivity, cybersecurity, and managed network solutions, through a competitive contract vehicle. The program's structure encourages competition among major telecommunications providers, leading to better pricing and innovation. While the full realization of cost savings and efficiencies can vary by agency and specific implementation, EIS is generally considered an effective framework for meeting the evolving IT needs of the federal government.
What are the historical spending patterns for wired telecommunications carriers at NASA?
Historical spending patterns for wired telecommunications carriers at NASA, prior to the EIS program, would have been influenced by previous contract vehicles such as Networx and GSA Alliant. These patterns likely show a consistent need for robust network infrastructure to support NASA's diverse operations, including research, space exploration, and administration. Spending would have been distributed across various providers offering services like dedicated internet access, MPLS, and voice services. The transition to EIS aims to consolidate and modernize these services, potentially leading to more streamlined spending and better overall value, but historical data would reflect a more fragmented approach with potentially higher costs for certain services.
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: 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: $835,925
Exercised Options: $678,316
Current Obligation: $518,470
Actual Outlays: $477,031
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: 2026-04-07
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