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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: M. Frank Greiffenstein who wrote (13445)	8/20/2001 2:57:29 PM
From: Bonzo	Read Replies (1) \| Respond to of 15615

Doc, if the DOD contract were cancelled due to GX's in-ability to meet the technical requirements, or if the DOD suddenly had second thoughts about GX's long term (financial) viability then of course you would be correct. However, that is not the case. The DOD had already completed extensive technical and financial evaluations of GX's proposal and would not have awarded the contract (in the first place)if there were any doubts of GX's operational or financial capabilities. The contract will be pulled on Procurement "procedural deficiencies" and has nothing to do with GX's ability to perform operationally. Probably sour grapes on ATT or Qwest's part in challenging the award disclosure process. IMO, GX will be re-awarded the contract after the 90 day recission period since its unlikely the contract can be re-priced (by competitors)after best and final, providing the scope of work remains the same (it will). With this DOD contract price is secondary since GX's seamless network capability and scale are unmatched by its competitors. The GX investment thesis based on the NATO and DOD contract awards is still valid IMO. Let me take you back to the DOD program managers comments after GX was originally awarded the contract in July. Pay particular attention to the last sentence of his comments: ``The Office of the Secretary of Defense is investing a significant amount of funding in high performance computing to provide the United States military with a technological advantage to support warfighting requirements,'' said Rodger Johnson, program manager of DREN. ``DREN is the cornerstone of that effort and we are pleased to be working with Global Crossing to accomplish this mission so critical to our country and our military. DREN customers employ applications that require enormous computing capabilities. Global Crossing provides us with the network services to effectively collaborate online from every location.''