Taking a look at GSA Networx and its potential for service providers

GSA Networx contractorsIn March 2007, the General Services Administration (GSA) finally named AT&T (NYSE: T), CenturyLink (NYSE: CTL) and Verizon (NYSE: VZ) as the prime contractors on the multibillion-dollar Networx Universal contract.

There were, of course, some competitive shifts on the way to winning a seat on the Networx contract. Verizon, while having a sizeable public sector business, enhanced its federal government capabilities when it completed its acquisition of MCI, forming Verizon Business in 2006, while CenturyLink gained similar stature when it completed its acquisition of Qwest last year.

Meanwhile, Sprint (NYSE: S), one of the holders of the FTS-2001 contract, the precursor to Networx, was not awarded a spot on Networx Universal.

The Networx Universal contract was awarded with a $48 billion ceiling and $525 million in guaranteed orders.

All of the Universal contract holders also secured a spot on the Enterprise contract with a $20 billion ceiling and $50 million in guaranteed orders. Later in 2007, Sprint and Level 3 (NYSE: LVLT) both won spots on the Networx Enterprise contract vehicle.

To provide a transition path and ensure no service interruption, Networx Universal service providers offer 48 services, including all of the services on the existing FTS-2001 contract. This includes everything from traditional PSTN voice to VoIP, VPN and wireless services. Networx Enterprise, meanwhile, provides mainly IP-based services.

Migrating to the Networx contract, of course, hasn't been without its issues, with most being transition delays.

In May, a report revealed that there's a difference in opinion between service providers and agencies on the revenue potential for Networx. CenturyLink, one of the Networx Universal and Enterprise contract holders, and the Telework Exchange, revealed in a study, Off the Hook: Federal Telecom Disconnect, that there are "significant" differences in priorities related to cost savings and changes in telecom mobility.

At the same time, Sprint and Level 3, which both only hold the Enterprise contract, say they are continually being edged out of opportunities by the three Networx Universal prime holders AT&T, CenturyLink, and Verizon.

Sprint has argued that GSA should consider combining the Networx Universal and Networx Enterprise contract vehicles into one contract, or advise agencies to adopt the lower-priced Network Enterprise option.

In the chart below, we chronicle the prime contractors/suppliers along with the companies that make up their supporting teams on Networx Universal and Enterprise contracts, the task orders they've been awarded, and the government agencies they serve.

Networx Prime Contractor / Supplier Networx Team Defense / Civilian Agencies Dollar Amounts Service Focus
    Tier 1 Contractors      
Universal AT&T (Prime on Universal, Enterprise) AT&T Mobility SSA $286M IP-based interactive voice response (IVR) automation and contact call center solution
    Northrop Grumman GSA $18M Telepresence
    EDS USDA $350M Data Services
    SRA International EPA $29M WAN Networking 
    Global Crossing (now Level 3) VA $120M WAN Networking 
    Bechtel DHS $292M IP network
      State Dept. $45M Managed services 
      DISA $94M Wireless and data services
    Tier 2 partners      
    Aspen Systems Corp. Transportation   Data Services
    Bechtel Corp. Customs & Border Protection $20M voice networking
    Broadcast International Inc. Treasury $270M 10 year, network services
    Geographic Network Affiliates International Inc.      
    Globecomm Systems Inc.      
    Go Remote      
    Information Systems Support Inc.      
    National LambdaRail      
    Pearson Government Solutions Inc.      
    SI International Inc.      
    Southeastern Universities Research Association      
    Titan Corp.      
    University of Washington's Pacific Northwest Gigapop      
    Xspedius Fiber Group      
    Small business partners      
    1Source Consulting Inc.      
    Applied Quality Communications Inc.      
    Apogen Technologies Inc.      
    By Light Professional IT Services Inc.      
    Century Technologies Inc.      
    Concert Technologies Inc.      
    Dynamic Network Resources Inc.      
    EMW Inc.      
    FedSys Inc.      
    HCI Technologies Inc.      
    Hurricane Consulting Inc.      
    iSys Inc.      
    Mercury Data Systems Inc.      
    MilVets Inc.      
    NetAmerica LLC      
    Reliable Integration Services Inc.      
    Superlative Technologies Inc.      
    Symfonia LLC      
    Tech 2000 Inc.      
    Telesis Corp.      
    TFC Automation Inc.      
    Triumph Technologies Inc.      
    Vencal Inc.'s Vencal Global Systems      
    Vector Planning and Services Inc.      
    Worldwide Information Network Systems Inc.      
    York Telecom Inc.       
  Verizon (Prime on both Universal and Enterprise)        
    Networx Universal Partners DHHS $169M data networking contract
    Akamai Technologies Inc. NASA  $108M communications and teleconferencing
    American Broadband Inc. DHS $1B 10 year, IP WAN services
    CICAT Networks inc. Labor Dept. $63M WAN services
    Computer Sciences Corp. VA $20.9M Call Center services
    Comtech LLC  DISA (primary) $752M  10 year, data services
    Concert Technologies Inc. Interior Dept. $15M Mobile Device Management
    FiberTower Corp. USPS $16.4M  10 year, long-distance, calling card services, and  IP services
    General Communications Inc. (primary) DHS OneNet  $679M IP WAN services
    General DataComm Inc. DITC $368M voice services
    General Dynamics Corp. Energy Dept.   network services
    Hewlett-Packard Inc.      
    IntelSat General Inc.      
    IP Labs LLC      
    Level 3 Communications LLC      
    Mindbank Technical Solutions LLC      
    Skytel Inc.      
    TeleTech Holdings Inc.      
    Verizon Wireless Inc.      
    Veterans Communication Services Inc.      
    Viack Corp.      
    York Telecom Inc.      
    Networx Enterprise Partners      
    Akamai Technologies Inc.      
    American Broadband Inc.      
    CICAT Networks Inc.      
    Computer Sciences Corp.      
    Comtech LLC      
    Concert Technologies Inc.      
    FiberTower Corp.      
    General Communications Inc.      
    General Dynamics Corp.      
    IntelSat General Inc.      
    IP Labs LLC      
    Mindbank Technical Solutions LLC      
    Skytel Inc.      
    TeleTech Holdings Inc.      
    Verizon Wireless Inc.      
    Viack Corp.       
  CenturyLink (Prime on both Universal and Enterprise) ACS SSA $233M 5 year, managed data services
    Akamai DISA / DITCO N/D Private Line Services
    BT DoD $100M Internet Protocol (IP) services
    Concert Technologies NASA  $14.2M WAN transport
    FiberTower VA $60M 8 year, WAN transport
    Hawaiian Telecom GSA $31M 10 year, voice services
    Hughes DISA (secondary) $368M 10 year, voice services
     LCN NLRB N/D voice services
     LGS Innovations U.S. RRB $3.5M 3 year, telecom services
    NetStar One      
    Nortel Government Solutions      
    Onstream Media      
     SES Americom      
     Time Warner Telecom      
    Turning Point      
  Sprint (Networx Enterprise) Hughes Network Systems LLC GSA consolidated switches  N/D Voice Services
    InterCall Inc. DoJ N/D  
    Lockheed Martin Corp. WASP N/D Data Services
      Labor Dept. N/D broadband wireless device services
      Labor Dept., ESA N/D broadband wireless device services
  Level 3 (Networx Enterprise) IBM Internet Security Systems Inc. SSA N/D wavelength services
    Multimax Inc.      


Taking a look at GSA Networx and its potential for service providers

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