Qwest gets OK to compete for some long-distance services

Qwest Communications International Inc. of Denver has won permission from the General Services Administration to offer Web-hosting services throughout the federal government, the company announced Jan. 17.

Qwest is the first Metropolitan Area Acquisition contract holder for local telecommunications services to be able to provide any form of long-distance telecom solutions. Long-distance services have been provided to federal agencies by Sprint Communications Corp., Westwood, Kan., and WorldCom Inc., Clinton, Miss., under the FTS2001 contract they won about two years ago.

Another MAA company has expressed interest in applying for a long-distance work, but GSA has not received the company's proposal yet, an agency spokesperson said. The agency expects the application in February.

For almost a year, the GSA's Federal Technology Service has been working on a crossover program that would allow MAA providers to add long-distance services and other cities to their contracts. The crossover program also would allow the two FTS2001 vendors, Sprint and WorldCom, to modify their contracts to provide local services.

In the past year, GSA had been subjected to both congressional and General Accounting Office scrutiny over several issues, including the fee structure in the MAA program and the pace of the transition to FTS2001.

Qwest has been among the most vocal critics of GSA's handling of the FTS2001 contract. The company filed a protest over a contract extension when the transition to FTS2001 had not been completed.

Qwest also tried to get the Industry Advisory Council to support adding telecom services and products to the Federal Supply Service schedule.

Jim Payne, senior vice president for Qwest's government systems division, said that once the company and FTS sat down to negotiate, the process moved quickly.

"My hat is off to the dedicated people at GSA," Payne said. "As soon as they looked at the specifics of what we were proposing ... they realized it was a conspicuous void."

In asking for the contract modification, Qwest was looking to identify emerging technologies that require long-distance service, Payne said, rather than pursuing basic long-distance business. The modification does not guarantee Qwest any business, but federal agencies can now request proposals for a range of Web-hosting services.

Sprint and WorldCom can no longer expect a business-as-usual model to apply to FTS2001, Payne said.

There is a federal market for Qwest's Web hosting, especially in light of the terrorist attacks of Sept. 11.

"Web-hosting services can play a key role in increasing government security, including disaster recovery and mitigation," Payne said. The company also plans to add other services.

The Qwest contract modification will foster competition in the government telecom market and speed deployment of new technologies, said Rep. Tom Davis, R, Va., chairman of the House Government Reform subcommittee on technology and procurement policy.

"Giving choices to federal agencies in cities across the country is a win for the government and a win for taxpayers. I'm pleased that Qwest has become a lead player in this cutting-edge procurement program," he said.

Under the terms of the new contract, Qwest's dedicated and managed federal hosting service is now available through the company's Boise, Idaho, MAA vehicle. The company also holds MAA contracts in Albuquerque, N.M., Denver and Minneapolis. MAA contracts have been awarded to date in 24 metropolitan areas nationwide.

"We are pleased to see GSA industry partners availing themselves of all opportunities available through Ö their contracts," said FTS Commissioner Sandra Bates. "Our FTS programs are designed to benefit customers by fostering competition and by lowering prices. We anticipate the crossover program to achieve both objectives as it continues to develop."