DOE's $153M Oak Ridge Network Contract Awarded to Lumen Technologies Under Full and Open Competition
Contract Overview
Contract Amount: $153,271,664 ($153.3M)
Contractor: Lumen Technologies Government Solutions, Inc
Awarding Agency: Department of Energy
Start Date: 1999-11-15
End Date: 2012-09-19
Contract Duration: 4,692 days
Daily Burn Rate: $32.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: IT
Official Description: PROCUREMENT OF THE OAK RIDGE FEDERAL INTEGRATED COMMUNICATION NETWORK (ORF-ICN)
Place of Performance
Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37831
Plain-Language Summary
Department of Energy obligated $153.3 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC for work described as: PROCUREMENT OF THE OAK RIDGE FEDERAL INTEGRATED COMMUNICATION NETWORK (ORF-ICN) Key points: 1. Contract awarded to Lumen Technologies Government Solutions, Inc. for $153.3M. 2. Procurement utilized full and open competition, suggesting a competitive bidding process. 3. The contract duration was 4692 days (approx. 12.8 years). 4. Fixed Price with Economic Price Adjustment (FP-EPA) contract type introduces potential cost fluctuations. 5. No small business participation was indicated.
Value Assessment
Rating: fair
The contract value of $153.3M over nearly 13 years averages to approximately $11.8M annually. Without specific performance metrics or comparable contracts for integrated communication networks of this scale and duration, a precise value assessment is difficult. The FP-EPA structure adds complexity to value analysis.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and allows the government to select the best value offering.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure competitive pricing. However, the FP-EPA clause could lead to price increases over the long contract term.
Public Impact
Ensures communication infrastructure for a major federal research facility (Oak Ridge). Long-term contract may provide stability for the provider and consistent service. Potential for cost overruns due to economic price adjustment clauses over a long duration. Lack of small business involvement may limit opportunities for smaller, specialized firms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (nearly 13 years)
- Fixed Price with Economic Price Adjustment (FP-EPA) clause
- No small business participation noted
Positive Signals
- Awarded under Full and Open Competition
- Significant contract value suggests critical infrastructure support
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on integrated communication networks. Spending benchmarks for such long-term, comprehensive network infrastructure projects can vary widely based on scope, technology, and geographic location.
Small Business Impact
The data indicates that small businesses were not involved in this contract, either as prime contractors or subcontractors. This suggests that the scope of work may have been too large or specialized for small business participation, or that opportunities were not actively pursued.
Oversight & Accountability
The contract was awarded by the Department of Energy, which has established oversight mechanisms for its procurements. The long duration and FP-EPA clause would necessitate ongoing monitoring to ensure cost control and performance.
Related Government Programs
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Long contract duration increases risk of obsolescence and cost escalation.
- Economic Price Adjustment (EPA) clause introduces cost uncertainty.
- Lack of small business participation may indicate missed opportunities for innovation and cost savings.
- Absence of performance data makes effectiveness assessment difficult.
Tags
department-of-energy, tn, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $153.3 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. PROCUREMENT OF THE OAK RIDGE FEDERAL INTEGRATED COMMUNICATION NETWORK (ORF-ICN)
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 $153.3 million.
What is the period of performance?
Start: 1999-11-15. End: 2012-09-19.
What was the specific scope of the ORF-ICN and how did it evolve over the contract's nearly 13-year duration?
The specific scope of the Oak Ridge Federal Integrated Communication Network (ORF-ICN) likely encompassed the provision, maintenance, and upgrading of communication infrastructure at the Oak Ridge facility. Over its nearly 13-year duration, the scope may have evolved to incorporate new technologies, expand network capabilities, or adapt to changing federal cybersecurity requirements. Detailed documentation would be needed to track these changes and their impact on cost and performance.
How did the economic price adjustment (EPA) clauses impact the final cost of the contract compared to initial projections?
The economic price adjustment (EPA) clauses in the contract allowed for modifications to the price based on fluctuations in economic factors like labor costs, material prices, or inflation. To assess their impact, one would need to compare the final contract expenditure against the initial fixed-price components and analyze the specific indices or formulas used for the EPA adjustments. Understanding the magnitude and frequency of these adjustments is crucial for evaluating cost control.
What were the key performance indicators (KPIs) for this contract, and how effectively did Lumen Technologies meet them?
Key performance indicators (KPIs) for an integrated communication network contract typically include network uptime, data transfer speeds, latency, security compliance, and response times for maintenance and support. Evaluating effectiveness would require access to performance reports, service level agreement (SLA) adherence data, and potentially user satisfaction surveys from the Department of Energy. Without this performance data, it's difficult to definitively assess the contractor's effectiveness.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Contractor Details
Parent Company: Lumen Technologies Government Solutions, Inc. (UEI: 362286288)
Address: 10300 EATON PL STE 440, FAIRFAX, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $201,174,980
Exercised Options: $201,174,980
Current Obligation: $153,271,664
Timeline
Start Date: 1999-11-15
Current End Date: 2012-09-19
Potential End Date: 2012-09-19 00:00:00
Last Modified: 2013-04-23
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