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KRT Impact Blog

GSA’s Networx:Telecommunications Update

The General Services Administration established the Networx Contracts as the follow on to the FTS 2001 contract ( awarded during 1998/1999) to provide Government users with up-to-date telecommunication services. Now what is the importance of these GSA contracts? They provide most of the core telecommunications services for the Government and just as important they are providing a way for cost-reductions in telecommunications costs and an opportunity to modernize many Government agencies telecommunications infrastructure.

Background on the Contracts

 

The FTS 2001 contracts were bridged until the networx contracts were up and running. These contracts were awarded in 2007 and embraced a new structure by creating a parallel set of contracts: Networx Enterprise and Networx Universal.

 

GAO Findings:

Like with many Government contracts and modernizations initiatives Networx hasn’t been without it’s hiccups and what drove me to drive this blog was a recent GAO report on the Networx transition. The report titled “GSA Needs to Share and Prioritize Lessons Learned to Avoid Future Transition Delays” from December 2013 had some of the following findings:

- Given the annual $1.3B in telecommunications services the Federal government invests in telecommunications services – GSA has an important role to play in acquiring these services in an efficient cost effective manner
- There has been a decline in telecommunications expertise at the Agencies and a weakness in project planning that has led to delays in transition to Networx
- Providing agencies with additional guidance on on transition project planning could help ensure that the next telecommunications transition proceeds more smoothly

Where do the Vendors stand?

As with all of my blogs I like to look at the spending data to see where the vendors and the agencies stand on Networx. Note there are some big discrepancies between what GSA states has been spent through Networx and the actual data reported through the Federal Procurement Data System – however we can still get some trending on which vendors have been successfully been utilizing their Networx contracts to grow their business with the Government.

Spending on Networx Universal

Spending on Networx Enterprise

According to the reported spending data we can see that it appears that AT&T has been successful at driving business through Networx Universal, while Verizon has had a lot of success driving business through Networx Enterprise.

Lessons/Conclusions

The competition for the follow on to Networx (Network Service 2020 – NS2020) should be starting up in the next few years and now may not be a bad time to start planning to be a part of the next big telecommunications modernization initiatives for the Government.

- If you are interested in providing telecommunications services and have some innovative solutions you may want to start building relationships with the Networx providers if you haven’t done so yet

- There may be opportunities to work with Agencies to help transition their telecommunications services – these are ongoing requirements that will require strong project management and transition support

Additional resources:

Feel free to reach out to us with any questions about the data or analysis in this blog.  Let us know if you want us to research any contracts or agencies in particular. Reach out to us via emailLinkedinFacebook, or Twitter!