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GSA completes second phase of local telecom contracts
The second phase of a government program designed to save money on local telecommunications services is now complete, according to the General Services Administration.
The second installment of the program, GSA's Metropolitan Area Acquisition Program, ended with two contracts for service in Philadelphia. The contracts went to AT&T and WinStar Communications Inc. Under the program, the government uses its bulk buying power to get the lowest rates from telecommunications companies.
"We are pleased that we have been able to conclude Phase 2 of the MAA program so successfully," said Sandy Bates, commissioner of GSA's Federal Technology Service. "All told, the contracts awarded in the 20 MAA cities to date have the potential to save federal government telecommunications users over $1 billion compared to current costs."
The contracts awarded in Philadelphia are valued at $296 million over eight years and will result in net savings of nearly 60 percent over current government rates. Standard voice, switched data and dedicated transmission service are included in the contracts.
To date, contracts have been awarded in New York, Chicago, San Francisco, Buffalo, Cincinnati, Cleveland, Los Angeles, Baltimore, Atlanta, Miami, Indianapolis, St. Louis, Minneapolis, Dallas, Denver, Boston, Albuquerque, N.M., Boise, Idaho, and New Orleans. The Washington area contract has been awarded separately.
Seven more cities will be added under the third phase, which is already under way.
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