FTS 2000 Recompetition

Opportunity Exists for Better Prices Gao ID: T-IMTEC-92-1 October 22, 1991

Although a major objective of FTS 2000 is to provide federal communications services at a cost comparable to or below commercial levels, a recent report (GAO/IMTEC-91-79, Sept. 11, 1991) found that the government has paid substantially above commercial rates for FTS 2000 services and will continue to do so unless prices are reduced. The report also recognized that FTS 2000 contracts require AT&T and US Sprint to provide additional services not required of commercial customers. At the time of the report, the General Services Administration (GSA) had not determined the value of these additional services, and GAO questioned whether they were worth the additional cost. This testimony draws on that report and notes that since its publication GSA has released a document that sets forth the general conditions that FTS 2000 vendors must meet in the recompetition process. GAO concludes that GSA has a good strategy for obtaining prices below available commercial rates.

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