http://www.rockymountainnews.com/drmn/business/article/0,1299,DRMN_4_2542262,00.html
Qwest wins a portion of $400 million U.S. contract
Network to connect defense, intelligence workers worldwide
By News Staff And Wire Reports
December 31, 2003
Qwest Communications has won part of the largest federal communications
network contract ever awarded.
Six communications companies, including Qwest, were awarded contracts worth at
least $400 million to build an advanced network linking defense and
intelligence workers worldwide, according to a statement Tuesday by an arm of
the U.S. military.
The research and engineering firm Science Applications International Corp.
received the prime contract for the project, known as Global Information
Grid-Bandwidth Expansion, or GIG-BE.
San Diego-based Science Applications chose Qwest, Ciena Corp., Cisco Systems
Inc., Juniper Networks Inc., Sprint Corp. and Sycamore Networks Inc. as
subcontractors.
The specific award amounts for the subcontractors weren't included in the
Defense Department release. But analysts have said the combined contracts
could generate around $900 million in the initial two years.
While analysts have said the contracts could help reverse the fortunes of
smaller subcontractors such as Sycamore, the contracts also come as a welcome
boost to Qwest, whose traditional phone revenue has been declining.
James Payne, Qwest senior vice president of government systems in Washington,
told Reuters that the contract was "multiyear" and, including
options, could stretch to 10 years. Qwest officials couldn't be reached
Tuesday evening for additional comment.
Qwest will provide gear offering multiple services, including
"on-ramps" to the optical networks, according to a release from the
Defense Information Systems Agency.
Defense Department officials didn't return telephone calls seeking comment.
Officials with Sprint, Cisco and Juniper confirmed the contracts to Reuters,
while the other companies were unavailable for comment.
The government began receiving bids for GIG-BE in June.
More than 55 proposals were made for the project by communications companies
seeking to boost sales amid slumping demand. Ciena, Sprint and Sycamore will
provide fiber-optic network equipment, while Juniper will supply Internet
routers. Cisco will provide gear capable of offering multiple services.
