GSA Awards San Antonio MAA Contracts

Winstar Communications Inc. and Southwestern Bell Telephone Co. won contracts Aug. 13 to provide local telecommunications services to federal agencies in San Antonio under the General Services Administration's Metropolitan Area Acquisition program.


The GSA estimated the new contract would save more than 50 percent over current rates. The value of the contracts could reach $239 million over eight years if all options are exercised.


These awards are the latest in the MAA program, which now serves 21 cities across the country. San Antonio marks the start of the third phase of the program, which involves procurements for seven more cities.


Winstar, based in New York, now holds MAA contracts in 13 of the cities. The company remains under Chapter 11 bankruptcy protection, however, and announced Aug. 1 it is cutting 950 jobs ? about half of its staff ? as it seeks investors or a new owner.


The San Antonio award brings to four the number of MAA contracts now held by Southwestern Bell, a subsidiary of San Antonio-based SBC Communications Inc.


Southwestern Bell and Winstar will compete against each other for work under the contract in San Antonio.