Verizon to Compete for Federal Contracts Valued Up to $330 Million

PHILADELPHIA - The U.S. General Services Administration (GSA) has authorized Verizon to compete to offer local voice and data communications services to federal agencies here and in 11 other key mid-Atlantic locales. The two contracts have a combined potential value of over $330 million. (Please refer to fact sheet for product and service details.)

The first contract, a modification awarded under the "crossover" provisions of the Metropolitan Area Acquisition (MAA) program, enables

Verizon to offer services to federal operations in the Philadelphia metropolitan area. The second, awarded by the GSA regional office covering the mid-Atlantic, enables Verizon to offer similar services in 11 additional cities in Delaware, Maryland, Pennsylvania, Virginia and West Virginia.

Verizon can now compete for federal agencies' communications business virtually anywhere in the mid-Atlantic region. These awards are part of GSA initiatives to consolidate contracts, deliver cost-competitive communications services and drive competition.

"The GSA's actions acknowledge Verizon's long-standing service to the federal government and our success in the MAA initiative," said Shelley Murphy, head of federal sales for Verizon Enterprise Solutions Group. "We are committed to providing government agencies with basic and advanced communications that are cost-competitive, supported by round-the-clock customer service and backed by the integrity, financial stability and reliability of the leading U.S. communications company."

Philadelphia Market Potential Valued at $296 Million

Federal agencies in the Philadelphia area, including the counties of Delaware and Philadelphia, will now benefit from increased competition for local communications services. Congress has authorized these agencies to spend up to $296 million between 2001 and 2009 for such services.

The GSA originally awarded the Philadelphia MAA to two other contractors in February 2001, and until now Verizon has been unable to offer communications services to government agencies under the Philadelphia MAA.

The crossover provisions in the MAA program enable companies awarded a contract in one city to submit a proposal to offer service in another MAA city. Crossover proposals can be submitted to the GSA one year after the award of the original contract for the city targeted for service extension.

In August, Verizon submitted a final proposal to the GSA to modify the company's MAA contract for Norfolk, Va., to offer local communications services to federal agencies in Philadelphia. Verizon was awarded the Norfolk MAA in January 2002.

Mid-Atlantic Multi-State Market Potential Valued at $35 Million

Awarded under the federal government's regional ACCESS program, the mid-Atlantic contract has a maximum value of $35 million - $5 million for each of seven contract lots, some of which cover multiple cities. The contract has a potential eight-year term with three base years plus five one-year options. Initially, comparable services will be available in both Philadelphia and the mid-Atlantic region.

Following are the locales covered by the mid-Atlantic contract award:
• Delaware - Wilmington
• Maryland - Chesapeake
• Pennsylvania - Harrisburg, Pittsburgh, Reading, Wilkes-Barre
• Virginia - Richmond, Roanoke
• West Virginia - Beckley, Charleston, Huntington

The mid-Atlantic multi-state award reflects GSA initiatives to expand on efficiencies achieved in the MAA program by applying lessons learned on a regional basis.

Verizon Success in the MAA Program

Since qualifying to compete in the MAA program in 1998, Verizon has been awarded a total of eight contracts and crossover contract modifications. The company provides over 410,000 voice circuits to government agencies that participate in the program.

Verizon now holds MAA contracts for Boston, Buffalo, N.Y., Norfolk, Va., Washington, D.C., and the GSA mid-Atlantic region. Crossover contracts have been awarded for Baltimore, New York and Philadelphia.

Verizon Enterprise Solutions Group manages the design, operation and maintenance of end-to-end total network integrated solutions for large business and government customers across the United States. With over 13,500 employees in 43 states, Verizon Enterprise Solutions Group offers a complete range of basic and advanced communications products and services to meet the voice, video, data and IP-related needs of its customers. For more information on products and services available through Verizon Enterprise Solutions Group, visit www.verizon.com/enterprisesolutions.

Verizon Communications

A Fortune 10 company, Verizon Communications (NYSE:VZ) is one of the world's leading providers of communications services, with approximately $67 billion in revenues and 221,000 employees. Verizon companies are the largest providers of wireline and wireless communications in the United States, with more than 139 million access line equivalents and 36 million Verizon Wireless customers. Verizon is the third largest long-distance carrier for U.S. consumers, with nearly 16 million long-distance lines. The company is also the largest directory publisher in the world, as measured by directory titles and circulation. Verizon's international presence includes wireline and wireless communications operations and investments, primarily in the Americas and Europe. For more information, visit www.verizon.com.

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Related Documents:

MAA Fact Sheet