DoD Awards $83.9M for Wired Telecommunications, Lumen Technologies Secures Contract
Contract Overview
Contract Amount: $83,892,371 ($83.9M)
Contractor: Lumen Technologies Government Solutions, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-10-01
End Date: 2026-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $46.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: OPERATIONS AND MAINTENANCE
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $83.9 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. for work described as: OPERATIONS AND MAINTENANCE Key points: 1. Significant contract value of $83.9 million for telecommunications services. 2. Lumen Technologies is the sole awardee, raising questions about competition. 3. The contract spans five years, indicating a long-term need. 4. Services fall under the 'Wired Telecommunications Carriers' NAICS code.
Value Assessment
Rating: fair
The contract's value of $83.9 million for five years of telecommunications services appears substantial. Benchmarking against similar contracts for wired telecommunications carriers is difficult without more specific service details, but the lack of competition suggests potential for overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive bidding process.
Taxpayer Impact: The lack of competition in this $83.9 million award means taxpayers may not be receiving the best possible price for these essential telecommunications services.
Public Impact
Ensures critical telecommunications infrastructure for the Department of Defense. Supports the operational readiness of the Defense Information Systems Agency. Potential for increased costs due to sole-source award impacting taxpayer funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
Positive Signals
- Long-term contract duration
- Essential service provision
Sector Analysis
This contract falls within the IT and telecommunications sector, specifically wired telecommunications carriers. Spending in this area is critical for government operations, but competitive procurement is key to ensuring value for money.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature of the award further limits opportunities for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense received fair pricing and that all avenues for competition were explored. Further oversight is needed to confirm the necessity of a non-competitive award.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Lack of competition
- Sole-source award
- Potential for overpricing
- Limited small business participation
Tags
wired-telecommunications-carriers, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $83.9 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC.. OPERATIONS AND MAINTENANCE
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 (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $83.9 million.
What is the period of performance?
Start: 2021-10-01. End: 2026-09-30.
What specific telecommunications services are being procured under this contract, and how do they align with the agency's mission requirements?
The contract is categorized under NAICS code 517311 (Wired Telecommunications Carriers). While the specific services are not detailed, this typically includes providing access to the public switched telephone network, broadband internet, and other wired communication services. These are essential for the operational functions of the Defense Information Systems Agency, supporting secure communication and data transfer for military operations.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award is not provided in the data. Typically, such justifications require demonstrating that only one source can meet the requirement, or that urgency or national security prevents competition. Without this justification, it is difficult to assess the reasonableness of the $83.9 million price, and it raises concerns about potential overpayment by taxpayers.
How does the $83.9 million cost over five years compare to industry benchmarks for similar telecommunications services, considering the lack of competitive bidding?
Benchmarking this $83.9 million contract against industry standards is challenging without detailed service specifications. However, the absence of competition inherently limits the ability to establish a competitive benchmark. It is probable that the price is higher than it would be under a fully competed contract, as Lumen Technologies likely faced less pressure to offer the most cost-effective solution.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications Carriers › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HC101321R0005
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2900 TOWERVIEW RD STE 150, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $118,895,519
Exercised Options: $83,892,371
Current Obligation: $83,892,371
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC101321D0010
IDV Type: IDC
Timeline
Start Date: 2021-10-01
Current End Date: 2026-09-30
Potential End Date: 2028-09-30 00:00:00
Last Modified: 2026-01-08
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