The General Services Administration yesterday said it plans to review all government contracts with Qwest. Qwest's government contracts are thought to be in the hundreds of millions of dollars, a report says.
Qwest Government Services has been approved by the General Services Administration's Managed Trusted IP Service as a Networx telecommunications contract holder and it plans to boost sales efforts around MTIPS marketing in the government marketplace. AT&T Government Solutions has also received GSA approval.
The Coalition for Government Procurement is calling on the Defense Department to buy more products and services from the General Services Administration instead of writing its own contracts. The coalition says redundant contracts used by the Defense Department are a big concern for contractors. "Our members tell us that they work with dozens of different (Defense) contracts, many of which perform the same or similar functions," said Larry Allen, president of the coalition.
Hedge funds are increasing investments in MCI and are urging the company to consider offers from both Qwest Communications and Verizon Communications. Separately, the General Services Administration yesterday ruled that Qwest may seek government contracts despite its past accounting problems. The ruling could make a Qwest-MCI deal more appealing to MCI, reports say.
The telecom renewed its contract with the U.S. General Services Administration through Jan. 10, 2004. Separately, the company is airing ads aimed at reassuring investors and customers, and two former WorldCom executives reportedly have agreed to a tentative deal with the SEC on fraud charges.
Former WorldCom CFO Scott Sullivan yesterday said he told company founder and former CEO Bernard Ebbers of the accounting problems plaguing the company. Ebbers' attorney denied Ebbers knew of any wrongdoing, reports say.