All five bidders will receive a share of the Networx Enterprise contract, the second portion of the largest government telecommunications award in history.
Three local firms won the contract, including Arlington-based Qwest Government Solutions and Vienna-based AT&T Government Solutions, both of which won the first Networx Universal contract. Reston-based Sprint Nextel, which lost Universal, also won Enterprise.
The U.S. General Services Administration administers Networx, through which 135 government agencies can buy telecom upgrades. It has an estimated worth of $20 billion and a ceiling of $68 billion during the next decade. New Jersey’s Verizon Business Inc., which won Universal, was chosen as an Enterprise contractor, as was Broomfield, Colo.-based Level 3 Communications, which did not bid on Universal.
Unlike Universal, Enterprise focuses on emerging technologies. GSA hoped the second contract would open the field to new bidders, because it had fewer requirements and a smaller reach. But mergers in the telecom industry resulted in nearly the same bidders for both, GSA’s assistant commissioner for integrated technology services John Johnson said at a news conference Thursday.
The Enterprise win was a boon for Sprint Nextel, which lost Universal despite being an incumbent provider.
“Sprint Nextel is very excited to win the … contract, which is more aligned with Sprint’s forward-looking strategy for offering next-generation IP services,” Sprint spokeswoman Sukhi Sahni said in a statement Thursday.
Winning the contracts gives Qwest a boost, said Diana Gowen, senior vice president and general manager.
“It’s an affirmation for Qwest that we’re a very competitive player in the federal telecommunications space,” Gowen said.
Level 3 Communications did not bid because it specializes in IP and advanced technologies that Enterprise emphasizes, said Jerry Hogge, senior vice president for Level 3’s federal government segment.
It will take about three months before agencies can place orders through Enterprise, Johnson said, as each company needs to go through a certification process.
Agencies have the ability to compare the prices and services offered by each contractor before selecting a vendor. The Enterprise prices are lower on average than Universal’s, Johnson said. Agencies will choose between the contracts depending on the scope of their needs.
