Global Crossing to Lose $400 Million Contract

The Defense Information Systems Agency is yanking a $400 million contract away from Global Crossing Ltd., which the Bermuda-based company won last month, after the four losing bidders protested the award, according industry sources.

DISA officials apparently were so taken aback by all the disappointed bidders filing protests, the agency is retracting the award and plans to re-open bidding in the next three months, sources said.

The contract, known as the Defense Research Engineering Network, or DREN, is a 10-year pact for long haul communication services for the Defense Department's high-performance computing modernization program.

DISA officials would not comment on the status of the protests, saying the matter is under protective order from the General Accounting Office.

Paul Kayatta, president of Global Crossing's government unit, said there hasn't been a resolution yet of the protests, so it's premature to say the contract has been pulled. DISA is "talking about some possible corrective action, but nothing has been done as yet," Kayatta said.

However, industry sources said the decision to withdraw the award has already been made.

Ray Bjorklund, vice president of Federal Sources Inc., a market research and consulting firm in McLean, Va., said that all the unsuccessful offerers protested in a series of independent actions.

DREN "is a rather important program for a very significant segment of the telecom industry," Bjorklund said. Significant changes in the telecommunications marketplace are pushing industry players to new heights of competition, he said; when companies lose out on a premier contract such as DREN, they "tend to scream louder."

Each of the four losing bidders filed a protest. They are: AT&T Corp. of New York, the contract incumbent; Sprint Communications Inc. of Westwood, Kan.; Qwest Communications International Inc. of Denver; and WorldCom Inc. of Clinton, Miss.. According to sources close to the matter, each company cited different reasons for its protest.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here


  • VIDEO: Explore the 2019 M&A Trends

    Editor Nick Wakeman interviews Kevin DeSanto of the investment bank KippsDeSanto about the highlights of their annual M&A survey and trends driving acquisitions in the federal space. Read More


    In our latest Project 38 Podcast, editor Nick Wakeman and senior staff writer Ross Wilkers discuss the major news events so far in 2019 and what major trends are on the horizon. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.