Lumen Technologies awarded $14.2M for wired telecommunications, serving the CFPB through 2026

Contract Overview

Contract Amount: $14,217,356 ($14.2M)

Contractor: Lumen Technologies Government Solutions, Inc.

Awarding Agency: Consumer Financial Protection Bureau

Start Date: 2020-09-23

End Date: 2026-03-22

Contract Duration: 2,006 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: EIS TASK ORDER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20552

State: District of Columbia Government Spending

Plain-Language Summary

Consumer Financial Protection Bureau obligated $14.2 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. for work described as: EIS TASK ORDER Key points: 1. Contract value represents a significant investment in essential communication infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Contract duration extends over several years, indicating a need for sustained service. 4. Fixed-price structure with economic price adjustments aims to balance cost stability with market fluctuations. 5. The service falls under the 'Wired Telecommunications Carriers' NAICS code, a mature industry. 6. Geographic focus on Washington D.C. highlights the concentration of federal operations in the capital.

Value Assessment

Rating: good

The contract value of $14.2 million over its period of performance appears reasonable for comprehensive wired telecommunications services supporting a federal agency. Benchmarking against similar contracts for large-scale telecommunications infrastructure in the Washington D.C. area would provide a more precise value-for-money assessment. The fixed-price with economic price adjustment structure is common for long-term service contracts, aiming to mitigate risks associated with inflation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition. While more bidders could potentially drive prices lower, two offers generally provide a basis for price comparison and negotiation, suggesting a reasonable outcome for price discovery.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was awarded through a process designed to solicit the best possible offer from a range of qualified providers.

Public Impact

The Consumer Financial Protection Bureau (CFPB) is the primary beneficiary, receiving essential telecommunications services. Services include wired telecommunications, crucial for daily operations, data transmission, and internal communications. The geographic impact is concentrated in the District of Columbia, supporting federal agency functions. Workforce implications are indirect, primarily supporting the operational needs of the CFPB's employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to economic price adjustment clause over the contract term.
Dependence on a single provider for critical infrastructure could pose a risk if service is interrupted.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent process.
Long-term contract provides service stability and predictability for the agency.
Fixed-price element offers some cost certainty despite economic adjustments.

Sector Analysis

The wired telecommunications sector is a mature industry characterized by established infrastructure and significant competition among providers. Federal spending in this area typically supports agency operations, data centers, and nationwide connectivity. This contract fits within the broader category of telecommunications services, which are essential for government functions. Comparable spending benchmarks would involve analyzing other large federal contracts for similar network infrastructure and managed services.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss: false'. There is no explicit information regarding subcontracting plans for small businesses. The award to a large telecommunications provider suggests that the primary focus was on capability and scale rather than small business participation for this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Consumer Financial Protection Bureau's contracting and financial management offices. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Telecommunications Services (FTS) contracts
Agency-specific IT infrastructure procurements
Network and communication services for government agencies

Risk Flags

Long-term contract dependency
Economic price adjustment clause
Potential for service disruption

Frequently Asked Questions

What is this federal contract paying for?

Consumer Financial Protection Bureau awarded $14.2 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC.. EIS 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: Consumer Financial Protection Bureau (Consumer Financial Protection Bureau).

What is the total obligated amount?

The obligated amount is $14.2 million.

What is the period of performance?

Start: 2020-09-23. End: 2026-03-22.

What is the historical spending pattern for wired telecommunications services by the Consumer Financial Protection Bureau?

Analyzing historical spending for wired telecommunications by the CFPB would require access to detailed agency budget documents and past contract awards. However, given the agency's mission and operational needs, consistent investment in reliable communication infrastructure is expected. This $14.2 million contract, spanning from 2020 to 2026, represents a significant, multi-year commitment. Understanding if this amount is higher or lower than previous periods would require a comparative analysis of prior contract values and service scopes. Trends in telecommunications technology and pricing over time would also influence spending patterns, with potential shifts towards more advanced or consolidated services.

How does the pricing of this Lumen Technologies contract compare to similar federal telecommunications awards?

Direct comparison of pricing requires detailed service level agreements and unit costs, which are not fully detailed in the provided data. However, the 'full and open competition' award with two bidders suggests a degree of market validation. The fixed-price with economic price adjustment structure is standard for long-term services. To benchmark effectively, one would compare the per-line costs, bandwidth pricing, and managed service fees against other large federal contracts for similar geographic areas (like D.C.) and service scopes (e.g., enterprise-wide telecommunications). The $14.2 million total value over approximately six years indicates an average annual spend of around $2.37 million, which needs to be contextualized by the scale and complexity of the services provided to the CFPB.

What are the key performance indicators (KPIs) for this contract, and how is Lumen Technologies' performance monitored?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary. However, typical KPIs for wired telecommunications services include network uptime/availability, latency, jitter, packet loss, service restoration times, and customer support response times. The Consumer Financial Protection Bureau's contracting officers and technical points of contact are responsible for monitoring Lumen Technologies' performance against the contract's requirements and service level agreements (SLAs). Performance is usually assessed through regular reporting, service reviews, and potentially site visits. Failure to meet KPIs can result in penalties or remedies outlined in the contract.

What is the risk profile associated with this contract, considering its duration and service type?

The primary risks associated with this contract include potential service disruptions due to infrastructure issues or cyber threats, and the risk of cost escalation through the economic price adjustment clause. The long duration (over six years) also means the agency is locked into specific technology and provider, potentially missing out on newer, more cost-effective solutions that emerge. Dependence on a single vendor for critical communications infrastructure is another inherent risk. Mitigation strategies would involve robust service level agreements, contingency planning, regular security audits, and careful management of the economic price adjustment.

What is the strategic importance of this telecommunications contract to the CFPB's mission?

This telecommunications contract is strategically vital for the CFPB as it underpins the agency's ability to function effectively. Reliable wired telecommunications are essential for secure data transmission, internal and external communications, access to critical systems, and supporting the daily operations of its workforce. In the context of financial regulation and consumer protection, uninterrupted and secure communication channels are paramount for data analysis, enforcement actions, and public outreach. The contract ensures the CFPB has the foundational infrastructure necessary to execute its mission without interruption.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

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: $16,155,334

Exercised Options: $15,525,407

Current Obligation: $14,217,356

Actual Outlays: $12,788,397

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