US government names 10 firms to share $50bn telecoms budget

By:
Alan Burkitt-Gray
Published on:

BT and other newcomers join AT&T, CenturyLink, Level 3 and Verizon in list of approved contractors to share $50bn federal spend on telecoms

The US government has appointed BT and five other carriers to join the select group of AT&T, CenturyLink, Level 3 and Verizon in providing federal services under a $50 billion contract that runs 15 years.

The new Enterprise Infrastructure Solutions (EIS) contract from the US General Services Administration (GSA) replaces the previous Networx arrangement to provide telecoms services to the federal government.

The GSA accepted 10 of the 11 bids, rejecting only Windstream, though two of the winners, CenturyLink and Level 3, are due to merge later this year.

Tony Wellen, COO of BT Federal, said: “We are extremely proud to have been named a qualified bidder under the EIS contract and look forward to expanding our relationship with the GSA and the federal agencies they serve. BT Federal is fully prepared to assist in enabling a swift and seamless transition to the next generation of telecommunications services within the federal government sector.”

The 15-year contract includes a five-year base term with two five-year optional extensions. The $50 billion valuation – shared between all 10 companies – will apply over the full 15 years.

Alan Thomas, commissioner for the GSA’s Federal Acquisition Service, said: “The award of EIS is a major milestone that demonstrates GSA’s continuing commitment to giving federal agencies forward-leaning and flexible contract solutions that are designed in collaboration with our industry partners and provide streamlined access to mission-essential, cutting-edge services.”

The four companies in the previous Networx contract won total sales in 2016 worth $1.8 billion – and the GSA estimates that the government would have spent $665 million more without Networx.

EIS will replace Networx and regional telecoms contracts after 2020, thanks to an extension period that the GSA has granted. “During this extension period, GSA will focus on helping agencies with their transition of services from Networx to EIS,” said the administration.

The GSA lists all successful contractors for the EIS as:
AT&T;
BT Federal;
CenturyLink;
Core Technologies (Georgia);
Granite Telecommunications (Massachusetts);
Harris (Florida);
Level 3;
Manhattan Telecommunications (New York);
Microtech (Virginia); and
Verizon.

Mike Maiorana, senior vice president of public sector markets at Verizon Enterprise Solutions, said: “As an approved EIS contract provider, Verizon will be able to leverage our global enterprise and government experience to offer a comprehensive suite of solutions.”

He added: “We have intimate understanding of agency solution requirements and their diverse missions, and are able to deliver programs tailored to meet their evolving needs.”

Kay Kapoor, president of AT&T Global Public Sector, said: “It’s an honour to help agencies modernise their communications technologies. Through EIS, we can help them usher in the future of efficient, impactful government with our innovations in networking, cloud, cybersecurity, IoT and mobility.”