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GSA Picks up Option on MCI WorldCom Contract Agency Also Suspends Former WorldCom Officials

GSA # 9991

November 13, 2002
Contact: GSA Public Affairs, (202) 501-1231

WASHINGTON, D.C. - The U.S. General Services Administration (GSA) today announced that it has exercised an additional one-year contract option with MCI WorldCom Communications Inc. (MCIW). As part of GSA's FTS2001 contract, MCIW, a WorldCom Inc. (WorldCom) subsidiary will continue to provide contract services necessary for the government to satisfy its telecommunications needs, including mission-critical requirements. Awarded on January 11, 1999, the initial contract term of four years has been renewed to cover the period of January 11, 2003, through January 10, 2004. Also today, GSA suspended former WorldCom officials Scott D. Sullivan and David F. Myers from conducting business with the federal government.

In deciding to exercise the contract option, GSA indicated that MCIW's performance has been consistent with the terms of the contract even after the announcements early this year of WorldCom's financial difficulties and its Chapter 11 bankruptcy filing. GSA is working closely with the Department of Justice, which is representing the government's interests in Bankruptcy Court to insure that FTS contract interests are being taken into account and are not impaired.

MCIW currently provides telecommunications services to some of the larger organizations in the federal government, including the Departments of Defense, Interior, Commerce (including the U.S. Weather Service hotline), Health and Human Services and Transportation. The contract also includes service to the Federal Aviation Administration, the Social Security Administration (including its hotline number) and the Nuclear Regulatory Commission.

GSA's decision to suspend former WorldCom Chief Financial Officer Sullivan and former Controller Myers is based on adequate evidence of criminal wrongdoing. Mr. Sullivan has been indicted on seven criminal counts, including securities fraud, conspiracy to commit securities fraud and filing false statements with the Securities and Exchange Commission (SEC), and those charges are pending. Mr. Myers pled guilty to securities fraud, conspiracy to commit securities fraud and filing false statements with the SEC. Under federal law, an indictment or a guilty plea for such offenses is adequate evidence of misconduct to support suspension of these individuals from future government business.

The names of the two individuals suspended are included in the List of Parties Excluded From Federal Procurement and Non Procurement Programs, which contains the names of entities and individuals debarred, suspended, proposed for debarment, or declared ineligible by any agency of the Federal Government. The suspensions, which will remain in effect for the duration of legal proceedings, are effective throughout the executive branch of the Federal Government and apply to all new business with the Federal government.

GSA is a centralized federal procurement and property management agency created by Congress to improve government efficiency and help federal agencies better serve the public. It acquires, on behalf of federal agencies, office space, equipment, telecommunications, information technology, supplies and services. GSA, comprised of 14,000 associates, provides services and solutions for the office operations of over 1 million federal workers located in 8,300 government -owned and leased buildings in 1,600 U.S. communities.