GSA begins second set of local-service buys

GSA begins second set of local-service buys

The General Services Administration has awarded Bell Atlantic Corp. and AT&T Corp. contracts worth $40 million for local telephone service in Buffalo, N.Y.

GSA's Federal Technology Service said the rates on the service could save the government $6.4 million over eight years. The contracts have a base period of four years and four optional years.

The contracts are the first to be awarded in the second round of FTS' Metropolitan Area Acquisitions, which seek more competitive rates for local phone service. AT&T swept the first round of MAAs in May with wins for New York, Chicago and San Francisco.

'We have moved on to Phase 2,' MAA program manager Larry Hazzard said. 'We're looking at 16 additional cities.'

FTS had issued requests for proposals for 15 of the cities by the time the Buffalo contracts were announced Feb. 25. The final RFP for Philadelphia was pending late last month.

Although the second-round cities include large metropolitan areas such as Los Angeles, a number of smaller cities were selected because of their potential in expanding FTS' share of the local-service market. Federal users are not required to use the MAA contracts; FTS supports itself by charging administrative fees.

The Buffalo contracts include standard voice, switched data and dedicated transmission service. Rates overall are about 32 percent lower than current government rates, according to FTS estimates. Core analog Centrex rate savings range from 17 percent to 40 percent.

Hazzard said agencies in New York, Chicago and San Francisco are now shifting their business to the first-round MAA contracts. 'We've had a lot of interest in the MAAs and hope that some of this will materialize into a new customer base,' he said.

The released RFPs would cover local phone service in Albuquerque, N.M.; Atlanta; Baltimore; Boise, Idaho; Boston; Cincinnati; Cleveland; Dallas; Denver; Indianapolis; Los Angeles; Miami; Minneapolis; New Orleans; and St. Louis.

Nine companies have prequalified to make MAA bids. They are Ameritech Corp. of Chicago; AT&T; Bell Atlantic; BellSouth Corp.; Cincinnati Bell Corp.; Pacific Bell Telephone of San Francisco; Southwestern Bell Corp. of St. Louis; US West Inc. of Englewood, Colo.; and WinStar Communications Inc. of New York.

'William Jackson


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