WorldCom wins $250 million contract from Virginia

WorldCom Inc. has won a 10-year, $250 million contract from Virginia to provide advanced voice, data and Internet communications services, the company announced today.

The contract known as the Commonwealth of Virginia Network or Covanet is for four years with six one-year options.

Gov. Mark Warner, who announced the contract signing while visiting the Department of Motor Vehicles' call center in Richmond, said the contract is anticipated to deliver savings of $3.13 million per year.

Covanet is designed to deliver advanced communications services to state agencies, local and county governments, public universities and schools. Through the Virginia Information Technologies Agency, the company will provide the state with an integrated data and voice communications network that takes advantage of IP flexibility and serve as the platform for Virginia's ongoing e-government initiatives, the company said.

Headquartered in Ashburn, Va., WorldCom is now doing business under the brand name MCI. The company emerged a few weeks ago from Chapter 11 bankruptcy.