MCI captures DOT telecom business

The Transportation Department today announced that it had selected MCI WorldCom to provide voice, data and Internet services through its FTS 2001 contract with the General Services Administration.

An MCI spokesman estimated the award's value at up to $160 million over the eight years of the contract. The deal will cover the entire department, including the Federal Aviation Administration, but will not cover the Coast Guard's X.25 packet-switching network.

MCI WorldCom Government Markets already holds the FAA's Leased Interfacility National Airspace Communications System contract for highly reliable communications for air traffic controllers and other FAA employees. "We've built a strong track record within the FAA with LINCS," the MCI spokesman said. "We think that played a big role in the decision."

MCI won the FTS 2001 contract in January, and agencies have since been choosing between MCI and Sprint, the other FTS 2001 contractor. So far, the departments of Agriculture, Defense and Interior have also selected MCI. These departments and DOT are using AT& T as their service provider under the GSA FTS 2000 contract.