MCI wins in Round Two of FTS 2001

The General Services Administration this month selected MCI WorldCom as the second contractor on the $5 billion FTS 2001 contract that will provide the federal government with longdistance services and save taxpayers billions.

The General Services Administration this month selected MCI WorldCom as the second contractor on the $5 billion FTS 2001 contract that will provide the federal government with long-distance services and save taxpayers billions.

FTS 2001, awarded by GSA's Federal Technology Service, could save the government about $4 billion over eight years, compared with the existing FTS 2000 long-distance contract, according to Dennis Fischer, FTS commissioner.

Fischer said MCI's pricing for an average phone call would cost about 5.5 cents a minute and will decrease to about 2 cents a minute by the end of the contract.

FTS 2001, the long-awaited update telecommunications contract for the federal government, includes long-distance voice services; Internet-based services, such as electronic commerce; data communication services from low to high speeds, such as frame relay and Asynchronous Transfer Mode; videoconferencing; and high-availability circuits for mission-critical users.

"With the award today to MCI, we think we have achieved the lowest prices in history—even lower than those in December," Fischer said Jan. 12.

Rick Slifer, director of FTS 2001 programs at MCI, said he expects data services to play a much larger role in FTS 2001 than they did in FTS 2000. "We anticipate that data will be the fastest growing part of the contract, particularly frame relay, Internet and ATM," Slifer said. "And I think GSA views it the same way."

GSA last month selected Sprint as the first FTS 2001 contractor, saying that Sprint's pricing undercut rates on the current FTS 2000 network by about 60 percent. GSA then ran a second round of bidding that resulted in the award to MCI. AT& T, which handles 72 percent of the traffic on FTS 2000, lost in both rounds. Sprint also bid for business in the second round.

Fischer said he expects agencies to begin switching over to FTS 2001 "in the next three to four months." At a meeting with industry this month, he said FTS has set aside up to $14 million from its IT Fund to assist agencies in their moves to FTS 2001.

Observers said the awards hold the potential for changing the way federal agencies use telecommunications. Warren Suss, a telecom consultant with Warren H. Suss Associates, said agencies may view their transition from AT& T as an opportunity to revamp their entire telecommunications infrastructure.

"I think agencies are going to be likely to rethink their solutions," Suss said. "As long as these agencies are going through the pain of a transition, I believe many will use this process to move their technology forward."

Fischer said FTS will be encouraging "not to use like-for-like services" when moving to the new contract.

Federal agencies were required to buy telecommunications services off the FTS 2000 contract, but the FTS 2001 contract is not mandatory.

Mary Jane McKeever, president of AT& T Government Markets, said in a statement that AT& T "regretted GSA's decision" because the company believed its bid was "fully compliant and competitively priced." AT& T said it will decide after its debriefing next week with GSA whether it would protest the decision.

AT& T remains committed to the federal marketplace and looks forward "to continuing our relationships with all of the government agencies. We'll continue to serve these agencies through existing contracts, including the FTS 2000 extension agreement," McKeever said.

But analysts said GSA's decision represented a devastating blow to AT& T. "To lose 75 to 80 percent of the federal government [telecommunications business] and not have a vehicle out there to move customers onto has got to a big blow," said analyst Bill Cunnane, senior vice president of communications technology at Wheat International Communications.

Suss said he believes AT& T Government Markets, which already has reduced its work force substantially in the past year, will shrink even more. "They may fall below the critical mass needed to maintain a presence in this marketplace," he said.

Cunnane and Suss said AT& T's best course of action might be to bid on GSA's Metropolitan Area Architecture contracts for local service. If the company is successful in winning one of those contracts, it will have the ability to bid on GSA's long-

distance business as well—provided the two FTS 2001 vendors have met their minimum revenue guarantees of $750 million each.

***

FTS 2001 Services

* Long-distance, toll-free and 900 voice

* The Internet and intranet

* Data services, including Asynchronous Transfer Mode and frame relay

* Dedicated services

* Special arrangements for mission-critical users

* International communications

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.