GSA Releases FTS2000 Cost Effectiveness Study
January 16, 1998
Contact: Bill Bearden
Washington, DC - Describing it as another example of how GSA continues to cut costs while providing quality service, David J. Barram, Administrator of the U.S. General Services Administration, today released a report to Congress stating that monthly charges to the Government for long-distance services used by Federal agencies were $5.9 million less than the lowest commercial equivalent offerings last fiscal year.
The report to Congress is on the cost effectiveness of the agency's Federal Telecommunications System 2000 (FTS2000) program, which provides long-distance telecommunications services to Federal agencies. The report compares FTS2000 prices with available public commercial prices negotiated by large corporations and finds that FTS2000 prices were competitive and, in the aggregate, the least expensive in the industry.
"GSA contracts FTS2000 services with private sector suppliers at prices that in fiscal year 1997 were 14.0 percent or $5.9 million per month less than the lowest commercial offerings," Barram said. "These lower prices mean lower cost to Federal agency users and savings to the American taxpayers. It is an excellent example of how government is operating smarter by taking advantage of its buying power and saving tax dollars."
The report states that the already excellent FTS2000 prices are further reduced in fiscal year 1998. At the fiscal year 1997 level of usage, the total FTS2000 prices in fiscal year 1998 would be $8.6 million per month below the 1997 commercial prices.
The FTS2000 program offers integrated voice, data, and video telecommunications services to meet common-user needs government-wide. Services are provided through two 10-year contracts with AT&T and Sprint, and are projected to be valued at $5 billion over the program life.
The cost effectiveness report is available via the Internet at http://post.fts2k.gsa.gov.
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