In March 2007, the Federal Government is expected to announce the winner of the first of two major awards as part of the Networx contract updates. The contracts are estimated to be worth upwards of $68 Billion (yup, that's right) over 10 years. Networx will be a major upgrade to the Fed's video, phone, data and other communications systems - both wired and wireless.
Welcome to the 21st century! Obviously, this will be a significant transition for many Government Agencies from the old (and retiring) FTS2001 and Crossover contracts to the brand, spanking new, Networx contracts. Networx is expected to be the largest telecommunications services program ever undertaken by the United States government. It is supposedly involving more than 135 Agencies, more than 50 services, and thousands of voice and data circuits. The transition will require coordination between agencies, the General Services Administration, and a host of telecommunications contractors.
"It will provide a framework that supports cross-agency collaboration, transformation, and governmentwide technology improvement. Networx will maximize the use of government resources by providing a common procurement infrastructure and a performance based approach that will embrace commercial technical and interface standards. Networx will require that service providers offer the most current security features and services to ensure a secure government operating environment.
Networx will introduce new technology, new industry partners, and new ways to achieve a more efficient and effective government. It will allow agencies to focus resources on building a seamless and interoperable operating environment while GSA ensures agency access to the best technology industry has to offer."
Teams led by AT&T, Qwest and Verizon all submitted their final bids last month for the first award which will be for Networx Universal. (Universal is to be worth up to $48 Billion over the 10 year period.)
The second part of Networx, called Enterprise, will be worth the remaining $20 Billion, and is expected to be awarded in May. There is an additional team led by Level 3 vying for that part of the program.
It goes without saying this crucial contract will be widely anticipated by the major carriers, and a win will mean more than just the long-term revenue stream. With a $100 Million, 10 year, November 2006 major Federal win by Qwest for the Defense Information Systems Agency (DISA) over both AT&T and Verizon, it will be interesting to see how this one plays out. There is certainly lots of news in Denver about it, what with Level 3 and Qwest based out there.
Having just been awarded the Democratic National Conference for 2008, could this be the year Colorado rises above the tried and true?
And now, for the envelope....