GSA_Determination_Letter_Data_Center_Services_Lumen-Centersquare.pdf
PDF 384 KB Posted
- Attached to
- Master Agreement AZ|CTR079592
- Contract number
- CTR079592
- Issued by
- Arizona
About this file
This is a Procurement Determination document from the Arizona Department of Economic Security (DES) dated May 15, 2025, authorizing the use of a General Services Administration (GSA) contract with CenturyLink Communications, LLC dba Lumen Technologies Group (Lumen). The document involves the State of Arizona's procurement of data center services following the expiration of a previous statewide contract with Centersquare (previously Cyxtera) on September 19, 2024.
The procurement is for Colocation Data Center Services through GSA Contract Number 47QTCA20D0077, with a monthly recurring charge of $54,338.00. The contract covers data center space at a location in Phoenix, Arizona, including colocation space, fiber cross connect, gold support, riser connect, space allocation, and AC power type redundancy. The cost analysis shows an 8.79% increase from the previous contract, which is attributed to rising commercial electricity rates and infrastructure investments. The contract term is 24 months, and DES determined that using the Lumen GSA contract is in the state's best interest, considering quality, availability, and pricing.
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| File | Type | Posted |
|---|---|---|
| CTR079592_Contract_FE.pdf | ||
| CTR079592_Debarment_Check_12.1.2025.pdf |
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Text version
Katie Hobbs Michael Wisehart Governor Director
May 15, 2025
PROCUREMENT DETERMINATION
General Services Administration Contracts
AUTHORITY
A.R.S. § 41-2558 General Services Administration Contracts; A.A.C. R2-7-G304(B) General Services Administration Contracts
DETERMINATION
In accordance with A.A.C. R2-7-G304(B), the undersigned has determined that the use of a GSA contract or schedule is in the best interest of the State and the price is fair and reasonable based upon the rationale below and is equal to or less than the Contractor’s current GSA pricing:
1. Contractor Name: CENTRYLINK COMMUNICATIONS, LLC DBA LUMEN
TECHNOLOGIES GROUP (LUMEN)
2. GSA Contract or Schedule Number: 47QTCA20D0077
3. GSA Contract or Schedule Title: Multiple Award Schedule (MAS)
4. Description of procurement: Colocation Data Center Services
5. Purchase Type: Ongoing
RATIONALE
BACKGROUND:
On September 19, 2024, the statewide contract ADSPO18-185037 expired. The State Procurement Administration (SPA) selected not to resolicit Data Center Services going forward. Agencies using the expiring statewide contract were guided to develop alternative procurement plans.
DES owns its network servers, which are currently located at Iron Mountain in Phoenix, Arizona. Data Center Management has been contracted to Centersquare, previously Cyxtera, under the statewide contract ADSPO18-185037.
Given that Data Center Services is an IT procurement, utilizing a General Services Administration (GSA) contract is a valid and appropriate option. The GSA contract provides competitively sourced solutions at industry-standard rates and offers an efficient procurement pathway.
DES believes that using the GSA contract under LUMEN is in the state's best interest, taking into account quality, availability, and price.
COST ANALYSIS:
● Previous contracted cost estimate (Fig 1.)
● GSA contract fixed-price quote (Fig 2.)
● Graph illustrating the increase in colocation rent expenses from 2020 to 2024 (Fig 3.)
1789 W. Jefferson, Mail Drop 1514, Phoenix, AZ 85007 Telephone (602) 542-5757 • Fax (602) 542-5339 • https://des.az.gov/
● Commercial electricity rates were stable from 2010 through 2020 but have increased 25% in the last 3 years as power suppliers ramp up spending to address aging infrastructure and record demand. (Page 10, Rapid Expansion Report)
● LUMEN GSA quote = 54,338 monthly (Fig 2. and Ref.
) LUMEN Service Order DOC-0001531506v1.pdf
● Sept 2024 to April 2025 average = 49,763 monthly (Ref. ) Centersquare Invoices List.xlsx
● The percent difference of 8.79% increase is within expected cost increases.
Fig 1. DES FY 2024 Cyxtera DataCenter PO Estimate/ https://drive.google.com/file/d/11oJbu4kSBfXXDQswR9W7afTOjFRohhv8/view?usp=sharing https://docs.google.com/spreadsheets/d/1SmG1EB1VgYbZEQEhUblSAsOzhT7Saldh/edit?usp=sharing&ouid=114019369737818805079&rtpof=true&sd=true
Fig 2. Excerpt LUMEN Service Order Document No. DOC-0001531506
Fig 3. Page 10 Rapid Expansion Report
DOCUMENTATION
This determination shall be attached to the requisition in the State’s eProcurement System.
REFERENCES
(this document) 1. GSA Determination Letter Data Center Services Lumen-Centersquare
2. DES FY 2024 Cyxtera DataCenter PO Estimate.xlsx
3. Rapid Expansion us-data-center-report-h1-2024.pdf
4. LUMEN Service Order DOC-0001531506v1.pdf
5. Centersquare Invoices List.xlsx https://docs.google.com/document/d/1G-Xbpq9LyylTywG0Ob02f5a4AeOldLp4T8RjaGVOtIQ/edit?usp=sharing https://docs.google.com/spreadsheets/d/1dTd2xMk4BwoeedbuDWijOYj_94yModIm/edit?usp=sharing&ouid=114019369737818805079&rtpof=true&sd=true https://drive.google.com/file/d/1TtH731ceEsyb9DOnopnlzKfdTIOa5rQP/view?usp=sharing https://drive.google.com/file/d/11oJbu4kSBfXXDQswR9W7afTOjFRohhv8/view?usp=sharing https://docs.google.com/spreadsheets/d/1SmG1EB1VgYbZEQEhUblSAsOzhT7Saldh/edit?usp=sharing&ouid=114019369737818805079&rtpof=true&sd=true
Procurement Officer Signature Procurement Officer Title
Procurement Officer Name Date
Yesenia Sandoval 05/15/2025
Chief Procurement Officer https://azdesgov.na1.adobesign.com/verifier?tx=CBJCHBCAABAAjH1XU1lWD3M9vLuIkLOOWOBzdMb9QPUF
| PROCUREMENT DETERMINATION |
| AUTHORITY |
| DETERMINATION |
| RATIONALE |
| BACKGROUND: |
| COST ANALYSIS: |
| 2025-05-28T16:58:38+0000 | |
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