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Networx better with or without Treasury?

So we're hearing lots o' buzz about this MOU between Treasury and GSA. The talk is that GSA has offered Treasury concessions that they say could spell trouble for the upcoming Networx telecom contract.

The agreement was signed on Jan. 8 and formalized the decision, announced over the holiday, that Treasury will cancel its planned Treasury Communications Enterprise contract and use GSA's Networx instead.

One person, who said that he had not seen the MOU but was told about it, said that the word around GSA is that the agency agreed to cut its management fee from 7 percent to 3.5 percent for Treasury. GSA also reportedly agreed to cover up to half of Treasury's cost to move from older contracts to Networx, and to help pay any litigation costs that arise from the cancellation.

Again, this person had not seen the agreement and neither GSA nor Treasury are making it public. We have filed FOIA requests for it.

The big question, of course, is that if GSA does it for one agency, how are they not going to do it for every agency... and what do those fees do to the feasibility of the Networx contract.

If you have seen the MOU or have a copy of it, cdorobek at fcw.com... and you'll remain anonymous, of course.

Posted by Christopher Dorobek on Jan 09, 2007 at 12:16 PM


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