Dulles-based Sprint Nextel was shut out of the first phase of the Networx contract awarded Thursday by the U.S. General Services Administration, the largest government telecommunications contract in history.
Arlington-based Qwest Government Solutions, Vienna-based AT&T Government Solutions and Verizon Business Inc. will now compete for business from 135 government agencies purchasing telecom equipment upgrades. Networx is a two-part contract that government estimates to be worth $20 billion over the next 10 years, with a cap of $68 billion. The second phase of the contract, Networx Enterprise, which is focused on emerging technologies, will come in May. Sprint Nextel’s loss is a potential blow to the company, which has been a government telecom provider for 18 years. Sprint Nextel’s last GSA contract brought in about $324.65 million annually.
“Sprint is disappointed not to receive a portion of the Networx Universal Contract,” the company said in a statement Thursday. “The Sprint team spent significant time and energy on the program and has made large investments to meet the diverse requirements of the agencies.”
Sprint Nextel has a chance to bounce back if it wins the Enterprise contract in May. The company will meet with GSA next week and then determine whether it will protest the award, Sprint Nextel spokeswoman Sukhi Sahni said Thursday.
GSA did not clarify why Sprint wasn’t chosen. “We believe the three awardees best meet our needs,” said John Johnson, GSA’s assistant commissioner for integrated technology services, during a Thursday press conference. Government agencies are not required to participate in Networx, but the program encourages participation by negotiating lower prices from the three vendors. No company is guaranteed any amount of money under the contract.
“We’re very excited; it’s a big win for us,” said Tom McMahon, Qwest’s director of corporate communications and government relations.
Qwest had not competed for any of the major telecom contracts preceding Networx.
Conference call for contract botched
The announcement of the Networx contract, the largest federal telecom contract in history, was supposed to be a boon to the U.S. General Services Administration, unveiling the promise of dramatically improved communication abilities for 135 government agencies.
If only everyone had heard the announcement.
A technical glitch kept reporters from listening to the press conference remotely.
The problem was discovered about 20 minutes into the conference, when GSA officials asked for questions from the telephone lines and found out that those listening in hadn’t heard a thing. Officials hosted a second conference following the official announcement for the reporters left in the dark.
In an e-mail sent to The Associated Press afterwards GSA spokesman Jon Anderson apologized for the ironic snafu, saying it was a simply a matter of not establishing the necessary connection.
“Good telecommunications capability,” Anderson wrote. “But a few knuckleheads around can really mess up things, you know?”
The Associated Press contributed to this story.
– Melissa Frederick
