4 U.S. Telecoms Await $20B Contract Award

Four U.S. telecommunications companies await word on a $20 billion federal project to revamp the U.S. government’s technology infrastructure.

The cost of the 10-year Networx project — which AT&T Inc., Verizon Communications Inc., Qwest Communications International Inc. and Sprint Nextel Corp. have assembled teams of companies to help them secure — could balloon to $68 billion, The Washington Post reports.

The General Services Administration could announce the project’s most lucrative contracts, known as Networx Universal, as early as this week, the Post says. Separate Networx Enterprise contracts are expected to be awarded in June.

The technology overhaul will touch nearly everything federal employees rely on, from BlackBerry wireless handheld devices used by FBI agents to databases used by public schools, the GSA says.

The agency — responsible for managing and supporting federal agencies’ basic functioning — will chose at least two prime contractors, which will then be eligible to bid on individual agency projects. Dozens of smaller companies also stand to benefit from subcontracts.

The federal agencies involved will not be obligated to use the Networx vendors for all of their telecom upgrades.