Its current program to provide long- distance  telecommunications services—FTS2001—has two goals: to ensure the best  service and price for the government, and to maximize competition for  services. Related governmentwide telecommunications services are provided by  other GSA contracts: the Federal Wireless Telecommunications Service  contract and the FTS Satellite Service contracts. GSA’s Networx Program Development Actions Are Continuing

GSA is now planning its FTS Networx acquisition program, including the  awarding of new governmentwide contracts for a broad range of long  distance and international voice and data communications services,  wireless services, and satellite telecommunications services. Provide expanded opportunities for small businesses. To achieve those goals, the program calls for two acquisitions—Networx  Universal and Networx Select. In contrast, GSA plans to award multiple contracts for a more  geographically limited set of services under Network Select. Challenges Remain Before Finalizing the Networx Acquisition Program Strategy

Notwithstanding the acquisition planning activities completed by GSA and  the IMC to date, these entities face significant challenges in finalizing their  program strategy to ensure that Networx is appropriately defined,  structured, and managed to deliver those telecommunications services and  solutions that will enable federal agencies to most efficiently and  effectively meet their mission needs. Specifically, these challenges include:    Ensuring that adequate inventory information is available to planners  to provide an informed understanding of governmentwide requirements. Establishing measures of success to aid acquisition decision-making  and enable effective program management. Initiating the implementation planning actions needed to ensure a  smooth transition from current contracts to Networx. Further, the value of this critical program to customer agencies  will be improved through the application of lessons learned in  streamlining and prioritizing the contract modification process, in  effectively and expeditiously resolving billing problems, and in holding  contractors accountable for meeting agency requirements in a timely  manner.” Those in industry who commented on the Networx request for  information also noted the need for strong and comprehensive program  management to ensure successful transition, including not only the  availability of accurate inventories but also defined contractor and  government responsibilities. GSA has emphasized that its development of  the Networx program included an analysis of lessons learned from  existing programs and previous acquisitions. In summary, Mr. Chairman, Networx represents a critical opportunity to  leverage the strength and creativity of the telecommunications  marketplace to make the vision of delivering to agencies the  telecommunications business solutions they need to perform their  missions better and more cost-effectively a reality, and in so doing to carry  the federal government forward well into the 21st century. Likewise critical will be stakeholder  commitment.
Why GAO Did This Study

The Genera1 Services Administration (GSA) has initiated planning for its next-generation telecommunications acquisition program, known as Networx, which will replace the current Federal Telecommunications System (FTS) 2001 for longdistance and international services. It will also replace contracts for wireless and satellite communications products and services. Planning for this acquisition is occurring within an environment of tremendous change--in the industry, in underlying services and technology, and potentially in the regulatory environment. In this context, Networx can offer a significant opportunity for the federal government to flexibly acquire telecommunications services at competitive rates and apply innovative solutions to improving agency operations. At the request of the Chairman of the House Committee on Government Reform, GAO is providing an overview of acquisition planning steps completed to date, along with its assessment of challenges facing GSA and federal agencies as this acquisition proceeds.

What GAO Found

Over the past year, GSA has acted to ensure that all interested parties-- including industry and agency users--have had a chance to comment on the development of the successor to FTS2001 and associated contracts. In its planning for the Networx acquisition, GSA cited five goals for the program: (1) continuity of telecommunications services, (2) best value, (3) strong competition, (4) a broad range of services and providers in a changing marketplace, and (5) expanded opportunities for small businesses. To achieve this, GSA plans two acquisitions: Networx Universal--broadranging services with global coverage, and Networx Select--leading-edge services but more geographically limited. To take full advantage of the opportunities offered in these new contracts, GSA will need to address four key challenges: (1) ensuring that an adequate inventory of information about existing telecommunications services and assets is available, to give planners an informed understanding of governmentwide requirements; (2) establishing specific measures of success to aid acquisition decision making and effective program management; (3) structuring and scheduling the contracts to ensure timely delivery of competitively priced telecommunications services that meet agency mission needs; and (4) ensuring a smooth transition from the current contracts by initiating appropriate implementation planning actions. Both leadership from GSA and commitment from stakeholders in resolving these issues will be essential to establishing efficient, cost-effective, and secure telecommunications services. If this can be achieved, the Networx contracts will be optimally positioned to leverage the power and creativity of today's telecommunications marketplace to carry the federal government forward well into the 21st century.