GSA hikes Networx minimum

General Services Administration officials have doubled the minimum revenue guarantees for contractors on Networx Enterprise, one of the two telecommunications contracts that agency officials plan to award next year.

The contractors that are ultimately selected to be part of the Enterprise contract will share $50 million, officials announced Feb. 23. Previously, officials had planned to guarantee $25 million for Enterprise contractors. The guaranteed minimum for Networx Universal, the other component of the Networx acquisition, remains unchanged at $525 million.

John Johnson, assistant commissioner for service development and delivery at GSA's Federal Technology Service, said officials made the change in response to comments from industry officials. FTS and industry officials have been meeting and exchanging ideas throughout the course Networx's development.

The higher minimums for Enterprise will "promote greater competition among our industry partners, resulting in lower prices and better service for our customers," he said.

The Networx acquisition will replace FTS2001, the current major telecommunications contract, along with a governmentwide wireless contract. Networx Universal contractors will be required to provide service to all government locations served by existing programs in addition to all commercial locations that the contractor serves. Networx Enterprise contenders must offer a core set of IP or wireless services to a specified location.

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