MCI Win: MCI WorldCom Wins Largest Contract Since Merger - Government Activity

EDGE, On & About AT&T, Jan 18, 1999

MCI WorldCom has captured the second of two awards for the federal government's FTS2001 program that will provide comprehensive, global long distance networking services for federal agencies. The two awards, combined, represent the largest ever government telecommunications contract, which is estimated to be more than $5 billion over eight years.

In addition, the company expects that the contract will eventually create more than 200 new jobs around the country. The eight-year, multi-billion dollar contract includes a range of domestic and global voice, data, Internet and videoconferencing services. The terms of the contract will allow MCI WorldCom to offer, after one year, local services as well - leveraging the company's unique local-to-global-to-local proposition. The contract also represents a change for 70 percent of the government agencies that currently receive services under the FTS2000 contract. The transition will take place over the next year. The FTS2001 contract negotiated with MCI WorldCom will save the government approximately $4 billion over the life of the contract - while delivering state-of-the-art communications services. "This award underscores the significance of forging public/private arrangements to create quality service at good value," said Tim Price, president and chief executive officer, MCI WorldCom Communications. "This is MCI WorldCom's largest contract win as a newly merged company, and we're pleased that the program will not only bring innovative communications services to federal workers, but will also impact the millions of Americans that have daily contact with those same agencies." MCI WorldCom also holds significant federal contracts with the United States Postal Service, the Federal Aviation Administration, the National Science Foundation and the Department of Defense. The FTS -- or Federal Technology Service -- of the federal government's General Services Administration, is tasked by Congress and the Executive Branch to provide network services and information technology solutions for the entire government. FTS2001 was designed to allow individual user agencies to choose from the two awarded communications companies when provisioning their services. Previous FTS contracts stipulated which vendors the agencies were to utilize. This redesign also creates new opportunities for the awarded communications companies to secure additional contracts and increase their revenues. "This contract ushers in an exciting new era in government procurement," said Jerry Edgerton, MCI WorldCom senior vice president of government markets. "With an open, competitive environment, agencies have more choices and the flexibility to spend taxpayer dollars in a way that best suits their needs. MCI WorldCom account teams, customer service specialists, and technology experts look forward to working closely with the GSA and user agencies to define, initiate and maintain program components." "We are very pleased with the overall results of the FTS2001 competition," said GSA Administrator David J. Barram. "This is a good example of how we are using real market competition to help forge a path to inexpensive electronic government in the next millennium." "GSA's accomplishments in continuing successful alliances with companies such as MCI WorldCom are the key to our future success as we focus on our bottom line and future telecommunications initiatives," added Dennis Fischer, Commissioner of the Federal Technology Service. MCI WorldCom Government Markets is a sales and marketing unit of MCI WorldCom, serving the U.S. Government and its agencies, and state governments. Offering managed network services, systems integration, and other products, MCI WorldCom Government Markets is a leader in providing communications solutions to government organizations. For more information on Government Markets, visit its home page at www.governmentmci.com. MCI WorldCom is a global communications company with revenue of more than $30 billion and established operations in over 65 countries encompassing the Americas, Europe and the Asia-Pacific regions. MCI WorldCom is a premier provider of facilities-based and fully integrated local, long distance, international and Internet services. MCI WorldCom's global networks, including its state-of-the-art pan-European network and transoceanic cable systems, provide end-to-end high-capacity connectivity to more than 38,000 buildings worldwide. For more information on MCI WorldCom, visit the World Wide Web at http://www.mciworldcom.com or http://www.wcom.com.