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GSA Extends AT&T and Sprint FTS2000 Bridge Contracts

GSA # 9769

December 7, 2000
Contact: Bill Bearden (202) 501-1231
bill.bearden@gsa.gov


Washington, DC -- The Federal Technology Service (FTS) of the General Services Administration has announced that it has reached agreement with Sprint and AT&T to extend FTS2000 bridge contracts for long distance telecommunications services. This action was necessary to allow additional time for some agencies to complete their transitions from the old FTS2000 networks. In most cases, agencies are transitioning to new FTS2001 contracts with MCI WorldCom and Sprint. The FTS2001 contracts were awarded in December 1998 and January 1999 to replace FTS2000. Agencies have been working to transition away from FTS2000 since 1999.

According to Sandy Bates, FTS Commissioner, "Continuity of service is essential - we cannot and will not leave our customers stranded. Now it is time to move full speed ahead to get onto the new networks."

In general, prices under both the Sprint and AT&T extensions revert to those in effect in January 1999. Promotional prices that were offered during fiscal year 2000 to match FTS2001 price levels were discontinued. In addition, volume based pricing for switched voice service was reintroduced hence unit costs will climb as usage declines.

The AT&T contract requires a fee of $8 million to maintain FTS2000 systems for program management, provisioning, billing and emergency monitoring beyond December 6, 2000. Some agencies will incur additional costs because of increases in standby charges for excess capacity.

Frank Lalley, Assistant Commissioner for Service Delivery, whose organization manages both FTS2000 and FTS2001 programs, stated "Certainly we would have preferred to shut FTS2000 down on December 6 as planned. However, as a practical matter agencies must have more time to move."