Five Carriers Picked for Networx Enterprise Contract
Sprint was among 5 firms picked for the $20 billion GSA Networx Enterprise contract, a turnaround for a company shut out of the agency’s larger Universal competition in March (CD March 30 p1). AT&T, Level 3, Qwest and Verizon also are in on the 2nd big federal contract program, to provide voice, IP, wireless, satellite and IP services to 135 agencies.
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The 5 likely were the only contenders for Networx, said sources. Networx replaces the FTS2001 and FTS2001 crossover contracts and federal wireless contracts. GSA earlier chose AT&T, Verizon and Qwest for the broader Networx Universal contract, worth up to $48 billion. Winners must compete with one another for individual sales to agencies.
“It’s good news for Sprint, because it keeps them in the game,” said telecom consultant Warren Suss. But it may not be “great news,” he said, noting that the company had to make a “serious attitude adjustment” in bidding to succeed. “It’s surprising that Sprint did what they had to do in terms of price to get in the game,” said John Okay, consultant and former GSA deputy dir. “I think that’s certainly good news for the company. It’s good news for these agencies who are using Sprint. If they had missed Enterprise that would have changed the future, not only for the company but for the government as well.”
Okay said Level 3’s selection is also noteworthy, meeting GSA’s goal of bringing new players to govt. work. Enterprise aimed to attract niche players, he said. “Agencies still need to make an informed decision but at any time having more choices is better than a narrow field,” Okay said.
With contractors named, agencies must pick which program to use and then which carrier, Suss said. Sprint’s federal customers may want to stay with the company, which could help it win business after losing out on the Universal work. The Universal contract requirements, far greater in scope, include network security, video, domestic and international Internet conferencing and other services.
Sprint has been preparing for the contract for more than 2 years, hoping to shift from FTS to Networx, it said. It has a Tier-6 IP backbone with IPv6 services, integrated wireline and wireless managed service and other products to meet agency needs, it said. Qwest, a Universal contractor, serves about 50 agencies. AT&T provides telecom services to multiple federal defense and civilian agencies, it said.
Verizon, which calls itself the govt.’s largest provider of communications services, last year opened a Govt. Network Operations & Security Center to support govt. contractors.