DoD's $364M telecommunications contract with Qwest Communications awarded under full and open competition

Contract Overview

Contract Amount: $19,033,312 ($19.0M)

Contractor: Lumen Technologies Government Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2000-10-01

End Date: 2010-06-15

Contract Duration: 3,544 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200104!000086!5700!GG01 !38 LS/LGC !F3460898H5015 !A!N!*!N!0001 !20001001!20030515!362286288!364149682!148721178!N!QWEST COMMUNICATIONS FEDERAL S!7800 EAST ORCHARD ROAD !ENGLEWOOD !CO!80111!18370!019!04!DAVIS-MONTHAN AFB !PIMA !ARIZONA !+000001163406!N!N!000000000000!S113!TELEPHONE AND/OR COMMUNICATIONS SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !513310!*!*!4! ! ! !*!*!*!B!*!*!B! !A !N!J!2!002!B! !Z!N!Z! ! !Y!C!N! ! ! !Z!Z!A!A!000!A!A!N! ! ! ! ! ! !0001!

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80903

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $19.0 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. for work described as: 200104!000086!5700!GG01 !38 LS/LGC !F3460898H5015 !A!N!*!N!0001 !20001001!20030515!362286288!364149682!148721178!N!QWEST COMMUNICATIONS FEDERAL S!7800 EAST ORCHARD ROAD !ENGLEWOOD !CO!80111!18370!019!04!DAVIS-MONTHAN AFB !PIMA … Key points: 1. Contract awarded for wired telecommunications services, indicating a need for robust communication infrastructure. 2. The contract duration of over 9 years suggests a long-term strategic requirement for these services. 3. Awarded by the Department of the Air Force, likely supporting critical operational needs at Davis-Monthan AFB. 4. The firm-fixed-price contract type suggests predictable costs for the government. 5. The significant value of the contract points to a substantial investment in communication capabilities. 6. The contractor, Qwest Communications, has a track record in providing federal telecommunications services.

Value Assessment

Rating: fair

The total value of $364 million over approximately 9.5 years averages to about $38 million annually. Benchmarking this against similar large-scale telecommunications contracts for military bases is challenging without more specific service details. However, given the duration and scope, the pricing appears to be within a reasonable range for comprehensive wired telecommunications services, though a detailed cost-per-unit analysis would be needed for a definitive assessment.

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 competitive environment, though the exact number of proposals received and the evaluation process are not detailed here. A competitive award generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and services, potentially driving down costs and improving quality.

Public Impact

The primary beneficiaries are the Department of the Air Force and personnel at Davis-Monthan AFB, who receive essential communication services. Services delivered include wired telecommunications, crucial for command and control, data transmission, and daily operations. The geographic impact is concentrated at Davis-Monthan AFB in Pima County, Arizona. Workforce implications are likely related to the maintenance and operation of the telecommunications infrastructure, potentially supporting IT and communications specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to vendor lock-in and potential price increases upon renewal if competition is limited then.
Lack of detailed service breakdown makes it difficult to assess if the full value is being realized for every dollar spent.
Reliance on a single vendor for such a critical infrastructure component poses a risk if the vendor experiences financial instability or service disruptions.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should have yielded fair pricing.
Firm-fixed-price contract type provides cost certainty for the government over the contract period.
The significant investment indicates a commitment to providing reliable and robust communication services for military operations.

Sector Analysis

This contract falls within the Wired Telecommunications Carriers industry (NAICS 517110), a sector characterized by the provision of telecommunications services over wired networks. The market is often dominated by large, established providers due to the significant infrastructure investment required. Federal spending in this sector supports essential communication needs for government operations, including military bases, federal agencies, and civilian services. Comparable spending benchmarks would typically involve analyzing other large-scale telecommunications service contracts awarded to major carriers by various government entities.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the scale and nature of comprehensive telecommunications services, it is likely that the prime contractor, Qwest Communications, would subcontract portions of the work. However, the extent of small business subcontracting is not specified in the provided data, making it difficult to assess the impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Air Force. Accountability measures would be defined in the contract terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Information Systems Agency (DISA) Telecommunications Contracts
General Services Administration (GSA) Schedule Contracts for Telecommunications
Other Department of Defense Communications Infrastructure Awards

Risk Flags

Long contract duration
Potential for vendor lock-in
Limited competition indicated (2 bidders)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.0 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC.. 200104!000086!5700!GG01 !38 LS/LGC !F3460898H5015 !A!N!*!N!0001 !20001001!20030515!362286288!364149682!148721178!N!QWEST COMMUNICATIONS FEDERAL S!7800 EAST ORCHARD ROAD !ENGLEWOOD !CO!80111!18370!019!04!DAVIS-MONTHAN AFB !PIMA !ARIZONA !+000001163406!N!N!000000000000!S113!TELEPHONE AND/OR COMMUNICATIONS SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !513310!*!*!4! ! ! !*!*!*!B!*!*!B!

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 Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $19.0 million.

What is the period of performance?

Start: 2000-10-01. End: 2010-06-15.

What was the specific nature of the 'TELEPHONE AND/OR COMMUNICATIONS SERVICES' provided under this contract?

The contract data specifies 'TELEPHONE AND/OR COMMUNICATIONS SERVICES' under NAICS code 517110 (Wired Telecommunications Carriers). This broadly encompasses services such as local and long-distance voice transmission, data transmission, internet access, and potentially private line services delivered over a wired infrastructure. Given the award to Davis-Monthan AFB, these services would be critical for supporting base operations, including command and control, administrative functions, and data networking for various systems. The exact mix and volume of services would be detailed in the contract's statement of work, which is not provided here. However, the substantial value suggests a comprehensive suite of services rather than basic telephone lines.

How did the final award price compare to the initial solicitation or estimated value?

The provided data indicates an award amount of $364,149,682. However, the initial solicitation value or government estimate is not explicitly stated in the abbreviated data. To compare the final award price to the initial estimate, one would typically need access to the original solicitation documents or pre-award cost estimates. Without this information, it's impossible to determine if the contract was awarded at a premium, a discount, or precisely at the estimated value. Further research into the contract file or related procurement documents would be necessary for this comparison.

What is the track record of Qwest Communications (now Lumen Technologies) in fulfilling large federal telecommunications contracts?

Qwest Communications, now operating as Lumen Technologies Government Solutions, Inc., has a significant history of providing telecommunications services to the federal government. They have held numerous contracts across various agencies, including the Department of Defense, Department of Justice, and others, for services ranging from basic voice and data to complex network solutions. While specific performance metrics for this particular $364 million contract are not detailed, Lumen's continued presence and ability to secure large federal awards suggest a generally satisfactory track record. However, like any large provider, they may have faced performance issues or disputes on specific contracts, which would require a deeper dive into contract performance reports and agency evaluations.

Were there any performance issues or contract disputes associated with this specific award during its lifecycle?

The provided abbreviated data does not contain information regarding performance issues, disputes, or contract modifications for this specific award. Such details are typically found in contract performance reports, agency inspection records, or legal filings, which are not included in this dataset. To ascertain if there were any significant issues, one would need to consult more detailed contract administration records, such as Contractor Performance Assessment Reporting System (CPARS) data, or agency-specific contract management files. Without this, we assume the contract was administered without major, publicly documented disruptions.

How does the annual average cost of this contract compare to similar telecommunications services procured by other military branches or federal agencies?

The annual average cost for this contract is approximately $38.3 million ($364.15M / 9.5 years). Benchmarking this figure requires comparing it to similar large-scale, long-term telecommunications service contracts awarded to other military branches or federal agencies. Factors such as the scope of services (e.g., bandwidth, types of lines, included support), geographic location, and prevailing market rates at the time of award significantly influence pricing. Without specific details on the service mix and comparable contract data from the same period, a precise comparison is difficult. However, for a large military installation requiring comprehensive wired telecommunications, this annual average appears within a plausible range, though potentially on the higher side depending on the specific services included.

What was the competitive landscape like for this type of service at the time of award?

The contract was awarded under 'FULL AND OPEN COMPETITION' with two bidders identified. This suggests that the market for large-scale federal telecommunications services was sufficiently robust to attract multiple major providers. The presence of two bidders indicates a degree of competition, which is generally favorable for the government. However, the telecommunications sector, particularly for large, integrated solutions, can be concentrated, with a limited number of companies possessing the infrastructure and expertise to bid on such extensive contracts. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide a clearer picture of the competitive intensity.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1005 17TH ST RM 1630, DENVER, CO, 80202

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline