DOE awards Lumen $2.17M for wired telecommunications, supporting CONUS and OCONUS operations

Contract Overview

Contract Amount: $2,171,645 ($2.2M)

Contractor: Lumen Technologies Government Solutions, Inc.

Awarding Agency: Department of Energy

Start Date: 2021-08-04

End Date: 2027-04-30

Contract Duration: 2,095 days

Daily Burn Rate: $1.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE DOE REQUIRES DATA SERVICES TO SUPPORT HQ BASED OPERATIONS AND FIELD SITE ORGANIZATIONS (PRIMARILY CONTINENTAL UNITED STATES (CONUS) WITH A LIMITED NUMBER OF OUTSIDE CONUS (OCONUS) LOCATIONS (HAWAII, ENGLAND, AND JAPAN). THIS INCLUDES BUT IS NOT L

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585

State: District of Columbia Government Spending

Plain-Language Summary

Department of Energy obligated $2.2 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. for work described as: THE DOE REQUIRES DATA SERVICES TO SUPPORT HQ BASED OPERATIONS AND FIELD SITE ORGANIZATIONS (PRIMARILY CONTINENTAL UNITED STATES (CONUS) WITH A LIMITED NUMBER OF OUTSIDE CONUS (OCONUS) LOCATIONS (HAWAII, ENGLAND, AND JAPAN). THIS INCLUDES BUT IS NOT L Key points: 1. Contract provides essential wired telecommunications services for Department of Energy headquarters and field sites. 2. Services extend to both continental and limited outside continental United States locations. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. Lumen Technologies Government Solutions, Inc. is the selected contractor for this delivery order. 5. The contract duration spans nearly five years, indicating a long-term need for these services. 6. Pricing structure is firm-fixed-price, providing cost certainty for the government.

Value Assessment

Rating: good

The contract value of $2.17 million over approximately five years appears reasonable for comprehensive wired telecommunications support across numerous locations. Benchmarking against similar government-wide contracts for telecommunications services suggests that this pricing is competitive. The firm-fixed-price structure helps manage cost overruns, contributing to good value for money. However, a more granular analysis of the specific services included and their unit costs would be needed for a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bids suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and encourages contractors to offer their best terms and pricing to secure the award.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through market forces. It provides assurance that the government is receiving a fair price for the telecommunications services.

Public Impact

Benefits Department of Energy personnel by ensuring reliable communication infrastructure for daily operations. Supports critical functions at HQ-based operations and field site organizations across the CONUS. Extends essential communication services to a limited number of OCONUS locations, including Hawaii, England, and Japan. Ensures continuity of operations for DOE's mission-critical activities through robust network connectivity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Sector Analysis

The telecommunications sector is a critical component of government operations, providing the backbone for data transfer and communication. This contract falls under the Wired Telecommunications Carriers industry (NAICS 517110). The market for government telecommunications services is substantial, with agencies relying heavily on providers for secure and reliable connectivity. This specific award to Lumen Technologies is for essential support services, fitting within the broader landscape of government IT and communication infrastructure spending.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by the 'sb' field being false. There is no explicit mention of subcontracting goals for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though the prime contractor may engage small businesses in their broader supply chain.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm-fixed-price nature of the contract provides a degree of financial oversight by locking in costs. Transparency is generally maintained through contract award databases. The Department of Energy's Office of Inspector General would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Risk Flags

Tags

department-of-energy, wired-telecommunications-carriers, district-of-columbia, full-and-open-competition, delivery-order, firm-fixed-price, lumen-technologies, it-services, telecommunications, conus, oconus

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $2.2 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC.. THE DOE REQUIRES DATA SERVICES TO SUPPORT HQ BASED OPERATIONS AND FIELD SITE ORGANIZATIONS (PRIMARILY CONTINENTAL UNITED STATES (CONUS) WITH A LIMITED NUMBER OF OUTSIDE CONUS (OCONUS) LOCATIONS (HAWAII, ENGLAND, AND JAPAN). THIS INCLUDES BUT IS NOT L

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 Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2021-08-04. End: 2027-04-30.

What is the historical spending pattern of the Department of Energy on wired telecommunications services?

Analyzing historical spending on wired telecommunications by the Department of Energy (DOE) requires accessing detailed procurement data over multiple fiscal years. While this specific contract represents $2.17 million awarded in August 2021, understanding the broader trend involves looking at prior awards for similar services. Agencies like the DOE typically have ongoing needs for robust communication networks, suggesting consistent, albeit potentially fluctuating, spending. Factors influencing this spending include infrastructure upgrades, expansion of services to new locations, and changes in technology. A comprehensive review would involve aggregating data from contracts under relevant NAICS codes (like 517110) and service categories across different DOE components and fiscal years to identify patterns, peak spending periods, and the average contract values.

How does the number of bidders (5) compare to similar telecommunications contracts awarded by the DOE?

A competition level of 5 bidders for this $2.17 million wired telecommunications contract with the Department of Energy (DOE) is generally considered a healthy indicator of market interest. To provide a precise comparison, one would need to analyze a dataset of recent DOE telecommunications awards, categorizing them by contract value and service type. Contracts of similar scope and value might typically see anywhere from 3 to 8 bidders, depending on market dynamics and the specificity of the requirement. A higher number of bidders often suggests greater competition and potentially better pricing outcomes for the government. Conversely, fewer bidders could indicate a more specialized market or potential barriers to entry. Without a broader dataset, it's difficult to definitively state if 5 bidders is high or low, but it suggests the requirement was accessible to multiple qualified vendors.

What are the key performance indicators (KPIs) expected under this contract for Lumen Technologies?

While the provided data does not explicitly list Key Performance Indicators (KPIs) for this specific contract, typical KPIs for wired telecommunications services awarded by agencies like the Department of Energy (DOE) often include metrics related to network uptime and availability, service restoration times (Mean Time To Repair - MTTR), data transmission speeds and latency, and customer service response times. For instance, a common KPI might be achieving 99.9% network uptime. Service Level Agreements (SLAs) within the contract would detail these performance expectations and often include provisions for service credits or penalties if the contractor fails to meet them. The firm-fixed-price nature suggests that the contractor is incentivized to meet these performance standards to ensure full payment without scope creep.

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

Lumen Technologies Government Solutions, Inc. (formerly CenturyLink) has a significant track record of serving federal agencies. They are a major provider of telecommunications and network services, often participating in large government-wide acquisition contracts and individual agency awards. Their past performance typically includes providing services like managed network services, secure communications, and broadband internet access to various departments. Reviews of their performance on federal contracts often highlight their extensive infrastructure and experience. However, like any large contractor, there can be instances of performance issues or contract disputes, which would be detailed in contract performance databases (e.g., CPARS). A thorough assessment would involve examining specific past performance reports relevant to the scope and scale of this DOE contract.

Are there any specific risks associated with relying on a single vendor for wired telecommunications services, even if competed?

Even when a contract is awarded through full and open competition, relying on a single vendor like Lumen Technologies for essential wired telecommunications services presents inherent risks. These risks include potential vendor lock-in, where switching providers becomes costly and complex. If the vendor experiences financial instability, service disruptions, or strategic shifts, it could directly impact the DOE's operations. Furthermore, over time, the initial competitive advantage may diminish if the market evolves or the vendor's pricing becomes less competitive relative to emerging alternatives. Mitigating these risks often involves robust contract management, regular performance reviews, contingency planning, and potentially exploring multi-vendor strategies for critical infrastructure components where feasible.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - APLLICATIONS

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: $8,729,076

Exercised Options: $6,347,059

Current Obligation: $2,171,645

Actual Outlays: $1,704,481

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: 2021-08-04

Current End Date: 2027-04-30

Potential End Date: 2032-07-31 00:00:00

Last Modified: 2026-03-25

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