DoD's $14.5M Wired Telecom Contract with Lumen: A 7-Year Deal with No Competition
Contract Overview
Contract Amount: $14,534,217 ($14.5M)
Contractor: Lumen Technologies Government Solutions, Inc
Awarding Agency: Department of Defense
Start Date: 2018-10-01
End Date: 2026-09-30
Contract Duration: 2,921 days
Daily Burn Rate: $5.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: WIRED TELECOMMUNICATION SERVICES
Place of Performance
Location: BREMERTON, KITSAP County, WASHINGTON, 98314
Plain-Language Summary
Department of Defense obligated $14.5 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC for work described as: WIRED TELECOMMUNICATION SERVICES Key points: 1. Significant long-term commitment ($14.5M) for essential telecommunication services. 2. Sole reliance on Lumen Technologies raises concerns about potential overpricing and lack of innovation. 3. The 'NOT COMPETED' award method limits market exploration and taxpayer value. 4. Sector context: Wired telecommunications are critical infrastructure, but competition is key for cost-efficiency.
Value Assessment
Rating: questionable
The contract's pricing is difficult to assess without competitive benchmarks. Given the lack of competition over a seven-year period, there's a risk that the pricing may not reflect the most cost-effective options available in the market.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded using a sole-source method ('NOT COMPETED'), indicating a lack of competitive bidding. This significantly limits price discovery and may lead to higher costs for the government.
Taxpayer Impact: The absence of competition likely results in a higher cost to taxpayers than if the contract had been competitively bid, potentially by millions of dollars over its duration.
Public Impact
Taxpayers may be overpaying for essential telecommunication services due to the lack of competition. Government reliance on a single provider could lead to service disruptions if the provider faces issues. Missed opportunity to foster innovation and secure better pricing through a competitive process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration without competition
- Lack of clear justification for sole-source
Positive Signals
- Definitive contract provides stability
- Firm fixed price offers budget predictability
Sector Analysis
Wired telecommunications services are a mature market, but ongoing technological advancements and new providers constantly shift the competitive landscape. Benchmarks for similar government contracts often show significant price variations based on competition levels.
Small Business Impact
The data does not indicate any specific provisions or considerations for small businesses in this sole-source award, suggesting a missed opportunity for small business participation.
Oversight & Accountability
The 'NOT COMPETED' designation warrants further scrutiny to ensure proper justification and adherence to procurement regulations. Oversight should focus on whether alternative solutions were adequately explored.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks transparency and competition.
- Potential for inflated pricing due to lack of market pressure.
- Long-term dependency on a single vendor.
- No indication of small business participation.
- Risk of service stagnation without competitive innovation.
Tags
wired-telecommunications-carriers, department-of-defense, wa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.5 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. WIRED TELECOMMUNICATION SERVICES
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 Navy).
What is the total obligated amount?
The obligated amount is $14.5 million.
What is the period of performance?
Start: 2018-10-01. End: 2026-09-30.
What is the justification for awarding this significant telecommunications contract on a sole-source basis, especially given the duration?
The justification for a sole-source award is critical for ensuring taxpayer value and adherence to procurement principles. Without a clear, documented rationale, such as unique capabilities or urgent needs, awarding a $14.5M contract without competition raises significant concerns about potential overspending and missed opportunities for better pricing and innovation.
What are the potential risks associated with relying on a single provider for wired telecommunications services for nearly eight years?
The primary risks include price escalation over time, reduced service quality due to lack of competitive pressure, and vulnerability to service disruptions if the sole provider experiences financial or operational difficulties. It also stifles innovation as there's no incentive for the provider to offer cutting-edge solutions.
How can the Department of Defense ensure it is receiving fair market value for these services without a competitive bidding process?
To mitigate the risk of overpaying, the DoD should conduct thorough market research to establish independent government cost estimates and benchmark pricing against similar contracts awarded competitively. Regular contract performance reviews and exploring options for future competition, even for specialized services, are also crucial.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications Carriers › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0040618RT002
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4250 N FAIRFAX DRIVE, ARLINGTON, VA, 22203
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,077,360
Exercised Options: $16,715,264
Current Obligation: $14,534,217
Actual Outlays: $5,000,028
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2018-10-01
Current End Date: 2026-09-30
Potential End Date: 2028-09-30 00:00:00
Last Modified: 2025-09-26
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