Verizon Wins Defense Contracts Valued at Up to $1.12 billion

Verizon Business announced two contracts with the U.S. Department of Defense's Defense Information Technology Contracting Organization (DITCO) valued t up to $1.12 billion. The services will be provided under the federal Networx contracting program.


Under one agreement valued at as much as $752 million, DITCO, the contracting arm of the department's Defense Information Systems Agency (DISA), selected Verizon Business in a Networx Fair Opportunity conducted in June 2008 to provide Defense Department agencies with data services. They include network-based Internet Protocol Virtual Private Network services based on multi protocol label switching; Internet protocol services; asynchronous transfer mode; and wireless and point-to-point private line for existing services.


DISA provides real-time information technology (IT) and communications support to the president, vice president, secretary of defense and the military services including the combatant commands. Critical IP VPN data traffic will ride on the Verizon Business vBNS+ (Very High Performance Backbone Network Service) network, which is dedicated primarily to government and educational institutions with high-performance network requirements.


In a separate agreement valued at as much as $368 million, DITCO designated Verizon Business in a Networx Fair Opportunity held in February 2008 as the primary provider for voice services to help more than 700,000 users at military locations worldwide communicate and collaborate effectively. Long-distance, toll-free, calling-card, ISDN (integrated services digital network) and video-teleconferencing are among the services Verizon Business will provide.


As the projects are implemented, DITCO will have the ability to order additional services from Verizon Business that could increase the value of the agreements. The agreements were awarded under the U.S. General Services Administration's Networx Universal contract, which covers 10 years. Networx is among the largest federal telecommunication contracts ever awarded by the General Services Administration (GSA), providing federal agencies with a common vehicle for purchasing a comprehensive set of networking and technical services.


Verizon noted that it has been providing voice and data services to DITCO under the GSA's Federal Telecommunications Service (FTS) 2001 contract, the predecessor to the Networx program.http://www.verizon.com