• US GAO Announces Fed Telecom Networx’s Transition Costs $67 Million Over Budget: Lesson for Calnet3?

    January 15th, 2014 by admin Categories: Blogs Tags: , , , , ,

    The Statewide Technology Procurement Division, otherwise caught up in all the Calnet3  procurement processes and procedures, may find of interest a new GAO study of the Fed’s mammoth telecom vehicle Networx. Specifically, GAO reported that unanticipated “transition” costs from the old FTS2001 to Networx wasted nearly $67 million.

    Although GSA officials say the agency’s Networx contracting vehicles have put significant dents in the federal government’s telecommunications bills, a GAO study says the road to those savings wasn’t nearly as smooth as it could have been.

    The Government Accountability Office said complex acquisition processes and weaknesses in project planning contributed to delays transitioning to Networx from the GSA’s old FTS2001 contracts, resulting in cost increases and missed savings for federal users.

    According to the GAO study, under Networx, federal agencies tended to transition easier items first to demonstrate progress, before they turned to work on items such as data networks and international services that needed longer lead times. As a result of the delays, it said, GSA’s estimated cost to complete the transition increased by $66.4 million, 44 percent over the baseline estimate.

    Read story here: GAO: Networx contracts not as effective as they might have been



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