AT&T becomes third firm to protest Defense network contract

AT&T became the third telecommunications company to file a protest Monday against the Defense Information Systems Agency for awarding a controversial and highly prized $450 million fiber optic network contract to WorldCom.

The Defense Research and Engineering Network, known as DREN, a high-speed network for more than 5,000 scientists at Defense laboratories and research installations across the country, was awarded to WorldCom on April 4 after months of delays by DISA.

The contract was originally awarded last July to now-bankrupt Global Crossing. That award was rescinded amid protests by the four losing companies-Sprint, AT&T, Qwest Communications and WorldCom-that Global Crossing couldn't meet security requirements spelled out in the government's bid request.

After a second request was issued, those firms complained that DISA officials had unfairly relaxed the security requirements to make it easier for Global Crossing to win again. DISA officials have denied those charges.

DISA was expected to award DREN a second time on Jan. 25, but failed to do so. Three days later, Global Crossing filed the fourth largest bankruptcy in U.S. history. Telecom industry analysts and executives have said that the DREN contract could have allowed Global Crossing to stave off financial insolvency.

AT&T has filed its protests on the grounds that the company's proposal "was not evaluated fairly or reasonably," according to an AT&T spokesman. The company is the current contractor on DREN and continues to operate the network under an extension contract.

Sprint has protested the award to WorldCom on the same grounds. In addition, Global Crossing has protested that its offer wasn't fairly evaluated and that DISA unreasonably excluded the company from the competition because of its financial woes.

The General Accounting Office, which reviews all protests, couldn't confirm whether or not Qwest, the final DREN bidder, had filed a protest.