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GSA Report to Congress Finds FTS2000 Prices Lower than Lowest Commercial Prices

GSA #9554

February 16, 1999
Contact: Eleni Martin (202) 501-1231
eleni.martin@gsa.gov


WASHINGTON, DC -- The U.S. General Services Administration Report to Congress on the Cost Effectiveness of the FTS2000 Program determined that fiscal year 1998 FTS2000 prices were 15.9 percent lower than the lowest commercial prices. The comparison was between commercial prices in effect September 1998 and FTS2000 fiscal year 1998 prices. The total monthly FTS2000 price was $39.6 million compared to the commercial price of $47.1 million.

"The FTS2000 services were purchased from the telecommunications industry in fiscal year 1998 at prices that were $7.5 million per month less than the lowest commercial offerings," said GSA Administrator David J. Barram. "Lower prices mean tax dollar savings. These savings result from consolidating agency requirements and GSA's expertise in acquiring services at excellent prices."

FTS2000 delivers long-distance telecommunications services from the private sector to Federal agencies. It offers integrated voice, data, and video telecommunications services to meet common-user needs governmentwide. Services are provided through two 10-year contracts with AT&T and Sprint that were extended through 1999 with options for an additional year. Payments to AT&T and Sprint for services during the 10 years totaled $4.9 billion.

FTS2001, the FTS2000 successor program, will be phased in during the extension period. FTS2001 long-distance telephone, data, and video telecommunications will be provided by Sprint and MCI WorldCom.

On the award of the FTS2001 contracts, Barram said, "We will continue to invest in high technology to provide the federal workforce with the most economical, state-of-the-art tools they need to accomplish their mission. We look forward to even stronger partnerships with American industry as they lead the way with products and services for our customers -- products that we will buy using aggressive competition." The estimated value of government business under FTS2001 is more than $5 billion over the eight-year contract.

The report is available on the Internet at http://post.fts2k.gsa.gov.