Treasury cancels TCE procurement
The Treasury Department has decided to cancel its controversial
Treasury Communications Enterprise (TCE) contract, and will instead use
the General Services Administration’s Networx contract, agency
“The department believes where we stand
today, Networx makes the most sense for the taxpayer and the department
when considered over the 10 year contract period,” said Treasury
spokeswoman Eileen Gilligan. Networx meets our needs, she said.
decision marks a significant turn for the agency that had resisted many
calls to use the Networx contract, which is slated to be awarded next
year and is a governmentwide contract vehicle.
The move also comes as Ira Hobbs, Treasury’s chief information officer, is set to retire early next year.
is the latest turn in the history of TCE, which often has been at the
center of controversy. A Treasury Inspector General audit in February
found TCE deficient. In 2005, Treasury officials ended the TCE
procurement, terminating the deal with AT&T and pledging to use GSA
contracts, only to reverse their decision several months later.
Tom Davis (R-Va.), chairman of the House Government Reform Committee,
was one of the most vocal opponents of TCE. He even warned that he
would seek to eliminate funding for the Treasury telecommunications
system. Davis has said he favors a governmentwide approach to issues
such as network telecom rather than allowing individual agencies to
manage it on their own.
“He's extremely pleased, not just
because reason has finally prevailed and there's now consensus behind
the approach he's been pushing for years,” said Davis spokesman Dave
Marin. "But more importantly because this is a win for good government,
for all those who care about getting the biggest bang for the taxpayers
GSA Administrator Lurita Doan has argued that TCE made it more difficult for GSA to get the best prices on its Networx contract.