FERC awards Lumen Technologies $809K task order for wired telecommunications services through full and open competition
Contract Overview
Contract Amount: $808,968 ($809.0K)
Contractor: Lumen Technologies Government Solutions, Inc.
Awarding Agency: Department of Energy
Start Date: 2023-09-29
End Date: 2026-10-31
Contract Duration: 1,128 days
Daily Burn Rate: $717/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: AWARD OF EIS MTIPS TASK ORDER
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20426
Plain-Language Summary
Department of Energy obligated $808,968.45 to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. for work described as: AWARD OF EIS MTIPS TASK ORDER Key points: 1. The contract value represents a modest investment in essential telecommunications infrastructure. 2. Full and open competition suggests a potentially competitive pricing environment. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. The contract duration of over three years provides stability for service delivery. 5. The award is for wired telecommunications, a mature and competitive market segment. 6. The geographic focus is Washington D.C., a key federal hub.
Value Assessment
Rating: good
The award of $808,968.45 for wired telecommunications services appears reasonable given the contract duration and scope. Benchmarking against similar federal contracts for telecommunications infrastructure in the Washington D.C. area would provide a more precise value assessment. However, the firm fixed-price structure generally indicates that the contractor assumes the risk for cost overruns, which is a positive indicator for value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of four bidders (no=4) suggests a healthy level of competition for this requirement. This competitive process is expected to drive more favorable pricing and service terms for the government compared to sole-source or limited competition awards.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that is likely to result in a more cost-effective solution for essential telecommunications services.
Public Impact
The Federal Energy Regulatory Commission (FERC) will benefit from enhanced wired telecommunications capabilities. Essential communication services will be maintained and potentially upgraded for FERC operations. The primary geographic impact is within the District of Columbia. The contract supports the operational workforce of FERC by ensuring reliable communication infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if services are highly specialized or integrated.
- Reliance on a single vendor for critical communication infrastructure could pose a risk.
- Ensuring ongoing service quality and responsiveness throughout the contract term.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- Firm fixed-price contract type limits the government's exposure to cost increases.
- Longer contract duration (over 3 years) suggests a stable and reliable service provision.
- The contractor, Lumen Technologies, is an established provider in the telecommunications sector.
Sector Analysis
The contract falls within the Information Technology and Telecommunications sector, specifically focusing on wired telecommunications carriers. This is a mature market with numerous established providers. Federal spending in this area is consistent, supporting the backbone of government operations. Comparable spending benchmarks would involve analyzing other federal awards for similar telecommunications services, particularly within the D.C. metropolitan area, to gauge pricing efficiency.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses (sb=false). There is no explicit information on subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, though larger prime contractors often engage small businesses for various support roles.
Oversight & Accountability
The contract is subject to standard federal procurement oversight. As a delivery order under an existing Enterprise Infrastructure Solutions (EIS) contract, it likely benefits from the oversight mechanisms already in place for that larger vehicle. The firm fixed-price nature simplifies financial oversight. Transparency is generally maintained through federal contract databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- EIS (Enterprise Infrastructure Solutions) contracts
- Federal Telecommunications Services
- Wired Network Infrastructure
- Government Communications Services
Risk Flags
- Potential for service disruption impacting agency operations.
- Risk of technological obsolescence over the contract term.
- Dependence on a single vendor for critical infrastructure.
Tags
telecommunications, wired-telecommunications-carriers, federal-energy-regulatory-commission, department-of-energy, firm-fixed-price, delivery-order, full-and-open-competition, district-of-columbia, it-services, infrastructure, lumen-technologies
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $808,968.45 to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC.. AWARD OF EIS MTIPS TASK ORDER
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 (Federal Energy Regulatory Commission).
What is the total obligated amount?
The obligated amount is $808,968.45.
What is the period of performance?
Start: 2023-09-29. End: 2026-10-31.
What is Lumen Technologies' track record with federal agencies for similar telecommunications services?
Lumen Technologies Government Solutions, Inc. has a significant history of serving federal agencies. As a major telecommunications provider, they are a common awardee for various network and communication services under large government-wide contracts like EIS. Their track record typically includes providing a wide range of services such as managed network services, voice, data, and internet connectivity. Federal procurement databases often show numerous awards to Lumen across different agencies, indicating established experience. However, a detailed review of past performance evaluations and any past disputes or contract terminations would be necessary for a comprehensive assessment of their specific track record relevant to this task order's requirements.
How does the awarded price compare to market rates for similar wired telecommunications services in the D.C. area?
Benchmarking the $808,968.45 award against market rates requires detailed analysis of specific service components (e.g., bandwidth, circuit types, service level agreements) and the contract duration. Generally, the federal government leverages large contracts and competitive bidding to achieve rates at or below commercial market prices. Given that this is a task order under a larger vehicle (EIS) and was competed openly with four bidders, it suggests the pricing is likely competitive. However, without a granular breakdown of the services and terms, a precise comparison to commercial rates is difficult. Industry reports and analysis of other federal awards for similar services would be needed for a more definitive comparison.
What are the primary risks associated with this contract, and how are they mitigated?
The primary risks include potential service disruptions, vendor performance issues, and technological obsolescence. Service disruptions could impact FERC's operations. Vendor performance risks are mitigated by the firm fixed-price contract type, which incentivizes Lumen to meet performance standards to avoid penalties or non-payment. The longer contract duration (over three years) provides stability but also increases the risk of technology becoming outdated. Mitigation for this could involve contract clauses for technology refresh or ensuring the chosen technology has a reasonable lifespan. The competitive award process also helps mitigate risks by selecting a vendor with a demonstrated capability.
How effective is the competitive process in ensuring value for money for this specific award?
The competitive process, involving four bidders under full and open competition, is a strong indicator of potential value for money. It allows the government to solicit proposals from multiple qualified vendors, fostering price competition and encouraging vendors to offer their best terms and services. The firm fixed-price nature of the award further enhances value by shifting cost-risk to the contractor. While the specific details of the proposals are not public, the process itself is designed to drive efficiency and cost savings for the taxpayer. The effectiveness is ultimately realized if the awarded services meet or exceed performance expectations at the negotiated price.
What is the historical spending pattern for wired telecommunications services by the Federal Energy Regulatory Commission?
Analyzing FERC's historical spending on wired telecommunications services would reveal trends in their reliance on such infrastructure and their procurement strategies. Consistent spending in this category would indicate a sustained need for these services. Fluctuations might suggest changes in technology adoption, outsourcing strategies, or contract vehicles. Understanding past spending levels, contract types (e.g., fixed-price vs. cost-plus), and competition levels can provide context for the current award, highlighting whether this award represents an increase, decrease, or continuation of previous investment levels and procurement approaches.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
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: $4,916,414
Exercised Options: $2,979,170
Current Obligation: $808,968
Actual Outlays: $206,508
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: 2023-09-29
Current End Date: 2026-10-31
Potential End Date: 2032-07-30 00:00:00
Last Modified: 2026-04-08
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