DoD's $28.5M Lumen contract for Wired Telecommunications Carriers faces potential price adjustments
Contract Overview
Contract Amount: $28,471,184 ($28.5M)
Contractor: Lumen Technologies Government Solutions, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-08-10
End Date: 2026-08-09
Contract Duration: 1,460 days
Daily Burn Rate: $19.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: IT
Official Description: SAAS
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $28.5 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. for work described as: SAAS Key points: 1. Contract value is $28.5 million over 4 years. 2. Lumen Technologies is the sole awardee. 3. Fixed Price with Economic Price Adjustment (FPEPA) introduces risk. 4. Spending is within the Defense Information Systems Agency sector.
Value Assessment
Rating: fair
The FPEPA contract type allows for price increases, which could lead to higher costs than initially anticipated. Benchmarking against similar wired telecommunications contracts is difficult without specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although awarded under full and open competition, the specific award is a delivery order to Lumen Technologies. The FPEPA clause may limit the effectiveness of price discovery during the ordering process.
Taxpayer Impact: Potential for increased costs due to economic price adjustments could impact taxpayer funds.
Public Impact
Taxpayers may face higher costs if economic adjustments are significant. Reliance on a single vendor for critical telecommunications services. Contract duration of 4 years provides stability but limits flexibility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic Price Adjustment clause
- Potential for vendor lock-in
Positive Signals
- Awarded under full and open competition
- Long-term contract provides predictable service
Sector Analysis
This contract falls under the Wired Telecommunications Carriers sector, essential for supporting military communications infrastructure. Spending benchmarks for similar telecommunications services vary widely based on scope and technology.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award.
Oversight & Accountability
Oversight will be crucial to monitor the impact of economic price adjustments and ensure fair pricing throughout the contract's life.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Economic Price Adjustment (EPA) clause can increase costs.
- Potential for reduced competition on future orders.
- Vendor lock-in risk.
- Lack of specific service details makes benchmarking difficult.
Tags
wired-telecommunications-carriers, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.5 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC.. SAAS
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 $28.5 million.
What is the period of performance?
Start: 2022-08-10. End: 2026-08-09.
What specific telecommunications services are covered under this contract, and how are they critical to DISA operations?
The contract is categorized under NAICS code 517110 (Wired Telecommunications Carriers). While specific services aren't detailed, this typically includes the provision of voice, data, and video transmission services over wired networks. These are fundamental for DISA's mission of providing secure and reliable IT and communications support to the Department of Defense, enabling command and control, intelligence sharing, and operational coordination.
How will the economic price adjustment clause be managed to mitigate potential cost overruns for taxpayers?
Effective management of the economic price adjustment (EPA) clause requires rigorous monitoring of the specified economic indicators (e.g., CPI, labor costs). The contracting officer must ensure that any price increases are directly tied to documented changes in these indicators and are applied fairly according to the contract's terms. Regular reviews and clear communication with the contractor are essential to prevent unjustified price hikes and protect taxpayer interests.
What is the risk associated with awarding a delivery order to a single vendor, even if the initial contract was competitively sourced?
Awarding a delivery order to a single vendor, even under a competitively awarded contract, can reduce future competition and potentially lead to less favorable pricing on subsequent orders or modifications. It also creates a reliance on that specific vendor, increasing risk if they face performance issues or financial instability. Agencies should periodically reassess the market to ensure continued competition is feasible.
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 - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
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: $206,090,858
Exercised Options: $32,648,308
Current Obligation: $28,471,184
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: 2022-08-10
Current End Date: 2026-08-09
Potential End Date: 2026-08-09 00:00:00
Last Modified: 2025-12-18
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