More on the gov't contract..
January 12, 1999 14:43
MCI WorldComgets minimum $750 mln contract
WASHINGTON, Jan 12 (Reuters) - The U.S. General Services Administration selected MCI WorldCom to share in a minimum $1.5 billion deal to provide long-distance telephone, data and video telecommunications services to federal government agencies worldwide, the administration said Tuesday.
The award is the second and final round of the multibillion competition. The first part was awarded to Sprint Corp. in December.
In the latest round Sprint and MCI WorldCom will share equally a total minimum revenue -- $750 million each -- in federal telecommunications business, and both companies will compete head-to-head for business over the life of the contract, the administration said.
Both companies will compete against each other for business over the life of the contract which is expected to stretch out eight years and be worth a total of $5 billion, the government administration said.
These contracts follow the two telecommunications contracts, which began in 1988, and are held by AT&T Corp. and Sprint. "This has been an extremely hard fought competition," GSA Administrator David Barram, said in a statement. "In this final round GSA has gained even further
remarkable savings over those achieved in the first round."
newsalert.com |
