Gearing Up for Networx
TELECOMMUNICATIONS COMPANIES COMPETE FOR DEFENSE AND OTHER FEDERAL BUSINESS UNDER MASSIVE NEW CONTRACTS.
Defense agencies are beginning to choose telecommunications providers under the new Networx contracts, and competition between the selected companies is expected to be fierce.
Federal agencies are planning their transition to the Networx contracts following the expiration of the Federal Technology Service (FTS) 2001 contracts in the next few years. Networx is replacing FTS 2001 and will be the primary set of contracts through which federal agencies, including the Department of Defense, will upgrade their communications networks to support new technologies such as VoIP and IPv6, the next-generation Internet Protocol.
A key aspect of Networx is how it brings together new technologies available from companies that focus on meeting federal needs for security, business continuity and disaster recovery. The program makes it possible for agencies to buy a more comprehensive total solutions package than they have been able to buy in the past.
Networx is touted to be the largest federal communication program in history. Networx not only leverages the buying power of the entire federal government, but also introduces new technology, new industry partners, and new ways to achieve a more efficient and effective government. Networx’s overall design is to support a governmentwide enterprise architecture that enables cross-agency collaboration, transformation and comprehensive technology improvement.
“Networx is a big animal,” remarked Jeff Mohan, director of the Networx Program Office for AT&T Government Solutions, one of the winners of the Networx contract. “At $20 billion over the 10-year life, that’s about $2 billion a year in business.”
The Networx program comprises two complementary acquisitions: Networx Universal and Networx Enterprise.
Networx Universal was awarded in March to three prime contractors: AT&T, Qwest and Verizon Business Services. The scope of the program is vast, giving vendors the ability to compete to provide services to 135 federal agencies at locations in 24,000 buildings in 191 countries worldwide.
The contract is designed to enable the government to choose among a comprehensive range of integrated telecommunications and network services, ranging from converged voice, video and data services over a single network to a variety of next-generation offerings, including advanced IP services, managed network services and advanced security services. Networx Universal features 50 services—39 of them mandatory—ranging from legacy frame relay and ATM to cutting-edge VPNs and VoIP.
Networx Enterprise was awarded two months later to the same three prime Networx Universal vendors, with the addition of Sprint Nextel and Level 3 Communications. Networx Enterprise has fewer mandatory requirements than the Universal contract and is intended to allow additional companies to participate in the Networx program.
Networx Enterprise mandates service to 300 federal buildings in specific geographical areas. It involves nine mandatory services on which providers can bid, including three core IP network-transport services, four security services and two network-management services. Overall, carriers can bid on as many as 41 optional services. Level 3, for example, is offering 20 services, whereas AT&T is offering 42 services.
COMPETITIVE SELECTION
With agencies able to make more apples-to-apples comparisons on services, the pressure is on for vendors to win business based on their service, price and product portfolio. Even the two programs offer an element of competition, with Networx Enterprise pricing more favorable than that of Universal, depending on the service and the vendor.
For example, Networx Enterprise offers the “best prices for secure managed IP network services nationwide,” John Johnson, GSA’s assistant commissioner for Integrated Technology Services, said at a press conference announcing the Networx Enterprise contract winners.
What is especially important to this process is the multitude of service offerings Networx vendors will provide. It’s the competition between vendors that will keep the edge.
“Networx tries to provide an extremely broad portfolio of services to allow an end user to create solutions out of that portfolio rather than buying in piece parts,” said Mohan. “GSA bills Networx as offering true solutions contracts.”
No business has yet been doled out, but vendor selection is now underway for the 10-year indefinite-delivery, indefinite-quality contract. The contact has a four-year base, and three two-year options.
Government agencies are actively preparing for the transition. The Defense Telecommunications Service- Washington (DTS-W), for example, is handling the transition of long distance and international calling service for DoD and other federal agencies in the National Capital Region.
“Our goal is to ensure that this transition is seamless and that no interruption of service is experienced,” a DTSW Service Center memo stated.
The center has established a Networx Transition Team at DTS-W made up of experienced subject matter experts, who are working with DoD Networx transition managers from the Defense Information Systems Agency (DISA), the Defense Information Technology Contracting Office and GSA. The team predicts that the transition will result in improved delivery of telecommunications services to customers.
To ensure a smooth transition, all customers are required to review and validate the inventory of their FTS 2001 services by October 10, 2007. This inventory will serve as a baseline for providing transition reimbursements to agencies as they transition to the new contacts. It also provides customers with an opportunity to realize cost savings by disconnecting services that are no longer in use and resolving billing discrepancies.
Meanwhile, all Networx vendors must go through a process to verify their operations support systems (OSS) and obtain certification and accreditation of their systems from a security standpoint. At this time, all Networx Universal vendors have successfully completed their OSS certification and accreditation. The second step is for all vendors to pass the verification testing of their operations support systems. Qwest has completed its OSS verification testing, and the other two Networx Universal vendors were expected to complete their OSS verification testing by September. These tests and accreditations for Enterprise awardees will be completed in early November.
“DoD has announced that they will be contacting all of us and requiring information about our services,” stated Diana Gowen, senior vice president and general manager of Qwest Government Services.
Consequently, Networx vendors are stepping up their efforts to inform prospective government agencies about what they offer. While it is too soon for those companies under the Networx contracts to explain exactly what they will be doing for DoD agencies, vendors offered perspective on their services.
AT&T
AT&T is providing telecommunications services to multiple federal defense and civilian agencies under the FTS 2001 Crossover contract. The company has signed IP network contracts with the Army, DoD, the Department of Homeland Security and several other agencies.
“Still, a lot of people don’t know about AT&T Government Solutions,” Mohan said. “We also offer a lot of IT services that are available through GSA and are accessible through Networx.”
AT&T executives cite the fact that the company’s Networx team is made up of professionals who have security clearances and required certifications, that it offers proven technologies and innovation from AT&T Labs and partners, and that it has a broad portfolio of products and services.
Under the terms of the Networx Universal and Networx Enterprise contracts, AT&T can compete for task orders for telecommunications and networking services. The AT&T Networx team brings together industry-leading networking and IT capabilities, including EDS, GTSI, SRA International, Bechtel National, Global Crossing and NGC Information Technology.
“AT&T is ready to do what we do best: help agency leaders meet critical mission objections and better serve their customers by maximizing their communications capabilities,” said Don Herring, senior vice president, AT&T Government Solutions. “By harnessing our world-class networking and IT and software engineering expertise, AT&T will help agencies focus on their mission instead of the network.”
DoD is already a big customer of AT&T Government Solutions. “We do a lot of simulation and modeling, special services, and training simulation through DoD,” Mohan said. “We also offer logistics management systems through DoD, as well as do engineering services.”
The company holds a host of awards, including those with Veterans Affairs; Air Force ESC ITSP II; SATCOM II; Marine Corps CEOSS; the Army Infrastructure Modernization Program; Army Digital Switched System Modernization Program; Navy San Diego Metropolitan Area Network; and Navy Voice, Video and Data.
AT&T Government Solutions maintains a staff of 3,000 in the Washington, D.C., area.
“Specific to Networx, there is a lot of interest, especially regarding how we can combine services,” he added. “A lot of people are asking a lot of interesting questions, particularly how to combine services to solve a problem.”
QWEST
Like AT&T, Qwest has experience working with DoD agencies. “We are not an unknown entity,” commented Gowen.
The company has already obtained work from DoD. In November, Qwest was awarded an on-going contract worth up to $100 million from DISA to provide bandwidth transmission services for connecting military installations located across the West to the Global Information Grid (GIG) over the next 10 years. This contract is separate from the Networx contract. Qwest is also a leading provider to more than 50 federal government agencies, including the departments of Energy, Justice and Treasury.
A winner of both Networx Universal and Networx Enterprise, Qwest is the government’s best value contract award winner for its total life cycle 10-year price. “We were less than the other guys by a substantial margin,” Gowen said.
“Qwest has the capabilities, the solutions and the experience to deliver any type of complex communications service to customers across the nation—from a small business to a Fortune 500 company to the federal government,” said Tom Richards, executive vice president of Qwest Business Markets Group. “In addition to being a significant revenue opportunity for us, winning Networx means there is no longer any doubt that Qwest continues to excel, and that we are among the leaders in delivering innovative and valuable solutions for our customers.”
One thing that sets Qwest apart from most of the competition is its portal. Gowen describes it as being akin to one of the popular software packages that help taxpayers prepare their returns. “It keeps asking you more and more questions, and keeps giving you answers,” she said. “It will step you through enough questions that you will end up with your desired outcome. We are very user friendly.”
Company executives say the comments they have already received indicate that customers across the board, including the military, find Qwest’s portal to be unique. That was the feedback the company received “loud and clear” during a week-long conference GSA recently held in Denver for all customers, Gowen remarked.
When asked why agencies should use Qwest over the competition, Gowen pointed to price performance.
“AT&T offers the same 39 products and services that Qwest offers,” she said. “And our price performance is better than theirs. It comes down to how you work with customers to develop solutions for their problems.”
For example, the company was the first to submit certification and accreditation of its portal and OSS.
In late August, Gowen was expecting to receive notice to proceed from the GSA. “We are the first eligible to take orders from customers,” she stated.
With plans for DoD to contact all Networx vendors for information, Gowen also stressed how Qwest is already a high bandwidth provider throughout the government. “We think DoD needs lots of bandwidth. Qwest is ready,” she said.
SPRINT
Selected for Networx Enterprise, Sprint’s contract strengthens its leadership position in offering a broad portfolio of innovative telecommunications services that can be customized to meet the mobility, IP and convergence needs of federal, civilian and defense agencies, company officials say. This allows agencies to unify the functions and applications of their desktop, voicemail and mobile devices, and gives them the power to mobilize their work force without the slightest compromise in security.
“This new contract will provide a platform to bring future technological developments to the marketplace and help drive agency productivity enhancements,” said Tony D’Agata, vice president, federal government-public sector for Sprint.
D’Agata explained that Sprint was not awarded the Networx Universal contract based on price, which was the result of legacy product that the company is currently eliminating. But, he added, it was the second-lowest bidder on Networx Enterprise.
“We were the low bidder for IP, wireless and things that are specifically strategic for us,” he said. “We are about the future. We are big in IP transport services, security services, managed network services, wireless services—things agencies are expected to buy.”
Sprint also has a history with DoD, having been a vendor on the GIG and GIG-Bandwidth Extension project. ♦
