Panel: Open Networx to states and localities to expand broadband use

The General Services Administration should open its massive Networx telecommunications contract to state and local governments to encourage the expansion of broadband into rural and other underserved areas, a Federal Communications Commission panel said on Thursday.

The proposal, included in the initial recommendations for the national broadband plan, would allow other jurisdictions access to the lower process on telecommunications products and services that the federal government negotiated when awarding the Networx contracts, according to officials.

"We believe it is a win-win for the country," said Eugene Huang, government operations director for the National Broadband Task Force. "For state and local governments, this would be an additional option for them to consider when they go out and negotiate for their own telecom services."

GSA can open Networx to state and local governments only if Congress allows it. In 2003, the agency was allowed to offer its Schedule 70, off of which all information technology products and services are sold, to buyers outside the federal government.

Karl Krumbholz, director of the Networx services program at GSA's Federal Acquisition Service, said expanding the contract would not affect agencies' ongoing move to Networx services.

"The progress of the Networx transition will not impact the ability of Networx carriers to provide service to state and local governments," Krumbholz said. "Opening up the Networx contracts will allow these governments to take advantage of the value, services and operational support systems negotiated by GSA in the Networx contracts. Since Congress must authorize this change in law, we anticipate that it will take some time for this action giving carriers sufficient time to react positively to this change in government policy."

Warren Suss, president of Suss Consulting, which specializes in federal IT, said Networx would give state and local governments lower prices on telecommunications than they could have negotiated on their own. Opening Networx "gives GSA an opportunity to break into the state and local marketplace in a big way," he said. "No state and local government can leverage the marketplace as effectively as the federal government can. . . . It's an enormous opportunity for GSA to shine and spread the cost over a larger base of users."

Ray Bjorklund, senior vice president and chief knowledge officer for FedSources Inc., a market research firm in McLean, Va., agreed the move could help GSA provide more consistent service, but cautioned that managing the additional work could be a challenge for GSA.

GSA would have to handle a larger order volume, something it might not be equipped to do, Bjorklund said, adding some jurisdictions also might be limited by legislative authority or existing contracts and therefore could not buy off of Networx.

The task force will deliver the complete broadband plan to Congress on March 17.