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.
