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GAO-01-958R 1 (2001-07-27)

handle is hein.gao/gaocrptanse0001 and id is 1 raw text is: SGAO Accountability * Integrity * Reliability United States General Accounting Office Washington, DC 20548 July 27, 2001 The Honorable Tom Davis Chairman Subcommittee on Technology and Procurement Policy Committee on Government Reform House of Representatives Subject: Metropolitan Area Acquisition (MAA) Implementation Issues Dear Mr. Chairman: As you know, the General Services Administration (GSA) initiated its Metropolitan Area Acquisition (MAA) program in 1997 to achieve immediate, substantial, and sustained price reductions for local voice and selected data communications services in selected metropolitan areas. As of June 2001, GSA had awarded 37 MAA contracts for 20 metropolitan areas. The transition from existing GSA contracts to the MAA contracts is still under way. In your letter of June 27, 2001, you asked that we respond to several follow-up questions pertaining to your Subcommittee's June 13, 2001, oversight hearing regarding the MAA contracts. My responses to your questions follow below. 1: In your testimony, you note that GSA envisioned that these MAA contracts would complement its existing contracts, as well as provide a solution for local service contracts that were expiring. Are there any indications that these local contracts are conflicting with each other rather than complementing each other? There is an indication or appearance of conflict between the MAA contracts and GSA's existing contracts for local telecommunications services.' This conflict stems from terms in existing contracts regarding termination of service; according to some MAA contractors, these terms put them at a competitive disadvantage by reducing the incentive for agencies to move to the MAA contracts. For example, contractual agreements in effect in New York, New Jersey, and Pennsylvania establish a 1 In addition to the MAA contracts, FTS offers a variety of programs through which agencies can acquire local telecommunications service. For example, the Aggregated System Procurement program consolidates local requirements into an overall system procurement based on the Bell Operating Company boundaries. The Individual System Procurement program serves locations where the aggregated program does not. In addition, regional FTS offices have obtained rate stabilization agreements that allow agencies to acquire local tariffed telecommunications services at short-term discounts. GAO-01-958R Metropolitan Telecommunications Acquisition

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