Friday, March 30, 2007

 

Federal telecom networks

Twenty years ago, I was working for AT&T Bell Laboratories on a special assignment, preparing the proposal for FTS-2000, the procurement of the US government's Federal Telecom Services. It was an enormous project; a very large team of us got relocated to the outskirts of Washington. I spent months commuting between DC, New Jersey and Illinois. It was also a great team building and learning experience.

I reminisced about the days working on FTS-2000 when I read yesterday that AT&T, Qwest and Verizon won pieces of the successor network, Networx Universal, potentially valued at up to $48B. Can you imagine a procurement of that scale? And that is $48B green dollars!

Once again, the US has gone multi-vendor, an approach I endorsed last November for the Canadian Government with its wireless services.

I like to think competition brings out the best in all of us.

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Comments:
Maybe it does, but the US is increasingly awarding government contracts without any competitive bidding. In 2000, the value of US Government contracts awarded without competitive bidding was $91 billion. In 2006 that increased to $171 billion (source: OMB watch, Washington). Therefore, are things really better south of the 49th? Not sure.
 
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