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Valparaiso Univ. Law School

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Wednesday, December 15, 2004

Companies protest award of $1 billion Treasury contract

Government_executive A $1 billion government contract to provide telecommunications services to the U.S. Treasury Department is being challenged.  Three big players in the field, Qwest, Northrop Grumman, and Broadwing, are protesting the Treasury’s award to AT&T.

The contract at issue is for the "Treasury Communications Enterprise" (TCE), which provides service and tech support at 850 locations. According to Government Executive magazine's web site, knowledgeable observers suggest there may be problems with the procurement:

Treasury awarded TCE after receiving only one round of offers from the bidders, which included A&T rival Sprint Co. The department had reserved the right to seek only one round, but industry observers have noted that it's rare not to ask for multiple offers on a contract as technically complex and lucrative as TCE. A second round of offers might give the government a better range or service prices, they said.

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