Federal Technology Service

Commissioner
Robert J. Woods
Deputy Commissioner
John Okay
Assistant Commissioners
· Sandra N. Bates
Service Delivery
· Margaret C. Binns
Regional Services
· Bruce Brignull
Service Development
· Thomas R. Burke
Information Security
· Al Olson
Acquisition
· Abby Pirnie
Strategic Planning and Business Development
· Charles A. Self
Information Technology Integration
· Linda Vandenberg
Controller

Employees: 1,316
Revenue: $2.5 billion - Information Technology Fund
Other Funding:
$15.8 million - Appropriated (Direct)

The Federal Technology Service (FTS) delivers reimbursable local and long-distance telecommunications, information technology (IT), and information security services to Federal agencies. In FY 1997, FTS reorganized to better provide its customers around the world with best value, innovation, integration, and interoperability through two business lines: (1) Network Services and (2) Information Technology Solutions.

On October 1, 1997, FTS changed its name from the Federal Telecommunications Service.

FTS conducted its first agencywide customer satisfaction survey in FY 1997. Results showed 84.5% overall satisfaction with FTS products and services and 86.4% overall satisfaction with FTS representatives. However, the survey results also indicated a need for FTS to make customers better aware of the roles and capabilities it has in finding solutions to their technology needs. In response to this, FTS has undertaken an Information Outreach Initiative.

Network Services

To take advantage of the deregulation of the telecommunications industry which will result in greater integration of local and long-distance services, FTS consolidated its long-distance program, regional telecommunications and network applications into one business line-Network Services.

FTS2000 Long-Distance Telecommunications Service

FTS2000 provides low-cost long-distance service to 1.7 million users in the Federal Government. It carries an average of 485 million minutes per month of voice traffic-a total 5.9 billion minutes in FY 1997. Through innovative public/private partnerships, FTS2000 uses digital telecommunications and fiber optics to provide a full range of long-distance voice, data and video telecommunications services.

FTS2000 generated $681 million in revenues in FY 1997. Revenues were 9% lower than in FY 1996, because rates dropped dramatically as a result of the renegotiation of the FTS2000 contracts, which became effective October 1, 1996. The renegotiated rates provide on-network long-distance services for as low as 2-cents a minute. The FTS2000 overhead percentage remained at 8% (including a 1% surcharge to fund National Performance Review IT initiatives). FTS2000 continued to reduce employment levels and to streamline operations.

FTS2000 services are provided under two 10-year contracts with AT&T and Sprint that are due to expire at the end of 1998. FTS worked with Congress and the Executive Branch to develop a "Post-FTS2000 Program Strategy"-now known as FTS2001-to provide telecommunications services worldwide into the 21st century. Long-distance services will be delivered through comprehensive contracts that provide minimum revenue guarantees for vendors, leverage the high volume of the Federal market, and maximize competition and the range of customer options.

FTS long-distance services will no longer be mandatory for Federal agencies under FTS2001. Agencies will be able to select their own service provider. Another change will permit the vendors who win FTS2001 contracts, after a one-year forbearance period, to offer optional local services, while vendors in GSA's new Multiple Area Acquisition local service program will be able to offer optional long-distance service. Because of these competitive features, as well as rapid change in the industry and the impact of the 1996 Telecommunications Act, the FTS2001 strategy emphasizes commercial practices, flexibility, responsiveness and comprehensive contracts that offer all telecommunications services worldwide. Worth $5 to $8 billion, these will be the largest non-Defense Government contracts.

   

FTS manages several other related service acquisition projects:

· The $300 million Federal Wireless Telecommunications Service contract, awarded to GTE, Inc. in November 1996, provides nationwide cellular telecommunications services and equipment at prices that are highly competitive with equivalent commercial rates.

· The International Direct Distance Dialing contract, awarded in July 1997 to AT&T, provides a consolidated international direct dialing service for civilian and Defense Department agencies, at a 35%-40% discount from published tariff rates.

· Two FTS contracts for Commerce, Internet, and Electronic Mail Access (CINEMA), offer Federal agencies dial-up subscription services for Internet access, electronic commerce and E-mail at prices 33% lower than comparable commercial service.

· The Nationwide Wire and Cable Contract, to be awarded in early FY 1998, will enable users to economically upgrade and maintain cable and wiring to support Local Area Networks.

· The FTS Telecommunications Management Support Contracts, awarded in September 1997, provide cost-effective, high-quality telecommunications support services, and offer a choice of contractors. Under the contracts, Federal agencies and other authorized users worldwide can obtain support for engineering and analysis, operations and maintenance, testing and evaluation, and program management, as well as transition to the FTS2001 network.

For the first time, FTS is providing long-distance service to Native American tribal organizations. An agreement was signed in December 1996 with the Quileute Tribal Council of LaPush, WA. Ten other tribal organizations signed similar agreements with FTS in FY 1997, and more than 40 others have expressed an interest. Over 550

Native American organizations are eligible to receive FTS2000 long-distance, Internet and other telecommunications services.

FTS offers the Federal Information Relay Service (FIRS) for the hearing- and speech-impaired. FTS ensures that hearing- and speech-impaired individuals who use a teletypewriter have access to its telecommunications services. In FY 1997, FIRS handled 190,000 calls.

Regional Telecommunications Services

FTS Regional Telecommunications Services provides local voice and data telecommunications to Federal agencies. Due primarily to a monthly rate reduction, revenue declined 13% from $279 million in FY 1996 to $243 million in FY 1997. The number of FTS phone lines also declined, dropping from 556,314 in FY 1996 to 554,366 in FY 1997. The two primary factors contributing to this reduction are the downsizing throughout the Government and the fact that GSA local telecommunications services are no longer mandatory. Regional Telecommunications provides two major reimbursable activities: Switched Services and Purchase of Telecommunications.

FTS provides Switched Services through over 400 local telecommunications systems. They offer all the features of modern telecommunications systems-conferencing, voice mail, call forwarding, call pick-up, abbreviated dialing, integrated services and digital network lines. The FTS monthly line rate has fallen steadily over the past five years and dropped 17% from an average $24.16 in FY 1996 to $19.98 in FY 1997. An $11.1 million cut in overhead costs contributed to this year's savings.

In FY 1997, FTS adopted new acquisition strategies for low-cost local services. The Metropolitan Area Acquisition (MAA) program will take advantage of competition in major markets to achieve an immediate, substantive, and sustained price reduction for several layers of local telecommunications services. The first MAA contracts will be awarded in 1998 in New York City, San Francisco and Chicago. In the Washington, DC, area, FTS is initiating a new local telecommunications service-WITS2001. Starting in 1999, FTS will turn over to a contractor the 170,000 Government-owned telecommunications lines in the WITS network, under the contract that will enhance the infrastructure and consolidate FTS telecommunications services in the Washington area.

The $50 million Purchase of Telecommunications Services (POTS) program provides the contracts for Federal agencies to purchase telecommunications systems and services. The 20 POTS contracts provide new and reconditioned telephone station equipment, digital private branch exchange systems, digital electronic key systems, cellular equipment, telecommuni-cations devices for the deaf, installation, relocation, wiring, cabling and maintenance.

Emerging Technologies

FTS provides GSA's customers with cutting-edge technologies, including top-level home page development, intergovernmental technology integration and Internet training development.

Government Information Exchange (GIX). GIX provides a road-map to a vast array of Government information in a user-friendly platform, with links to Government websites. The GIX search service allows users to search and retrieve information from a database of more than 1.6 million documents. In FY 1997, GIX teamed with the Federal Information Center to form a seamless network to help the American public locate Government information quickly.

Federal Information Center (FIC): 2 Million Customer Inquiries. The FIC provides a toll-free "800" number which the public can call to inquire about Federal agencies, programs and services; about Federal publications; and about the laws and regulations under which Federal agencies operate. Serving all 50 states, the FIC fields about 2 million inquiries annually.

Iowa Communications Network (ICN) is a Federal-State partnership that is developing a statewide network to improve delivery of Government services. ICN has piloted use of the network for many applications, including Social Security claims hearings, Veterans Affairs (VA) appeals, Federal Court arraignments, and telemedicine applications at VA medical centers. In FY 1997, FTS established six regional video-conference centers connected to the ICN and helped implement a Citizens Information Network.

Information Dissemination Management

Center for Electronic Messaging Technologies. Electronic Messaging includes Governmentwide E-mail and electronic infrastructure development, X500 directory services and E-mail technical services. In FY 1997, the Center agreed to assume responsibility for managing the Federal Government gateway on the Internet. Effective October 1, 1997, all agencies creating Federal Internet addresses must register new .gov domain names with GSA.

FTS manages the Blue Pages Project, to make it easier for the public to find Federal telephone numbers in 6,200 telephone directories around the country. The project is a partnership among GSA, other Federal agencies, local Federal Executive Boards and Associations, and the publishers of telephone directories. More than 200 individuals from 24 agencies worked with directory publishers, including Ameritech and Sprint, to make the Government listings easier to use. By the end of FY 1997, 14% of all U.S. households were provided with new blue pages listings. More than 50% will be reached by the end of FY 1998.

Information Technology Solutions

In FY 1997, GSA consolidated its IT programs within Information Technology Solutions. These centers of expertise help agencies acquire, manage, integrate and use automated data processing resources securely. They are non-mandatory and fully self-supporting.

Information Technology Integration

The four major Information Technology Integration (ITI) programs grew by 53% overall to a total business volume of $1.4 billion in FY 1997.

(1) Federal Information Systems Support Program (FISSP) provides agencies with systems definition and design, business and scientific software services, computer security studies and risk analyses, facilities management, and related services, through contracts with private sector vendors. Its business volume grew 25% from $312 million in FY 1996 to $389 million in FY 1997.

(2) Federal Computer Acquisition Center (FEDCAC) delivers reimbursable full-service management of computer acquisitions worth more than $100 million.

(3) Federal Systems Integration and Management Center (FEDSIM) helps agencies acquire and use IT and information systems, on a fully reimbursable basis. FEDSIM analysts provide cradle-to-grave technical and acquisition services, including outsourced data processing, Global Positioning Systems services and equipment, and disaster recovery services. Business volume for FEDSIM and FEDCAC totaled $481 million in FY 1997, double the $240 million in FY 1996.

(4) Federal Acquisition Support for Technology (FAST) sales grew strongly in FY 1997. In its second full year, the program provided $552 million in technological contracting support for Federal agencies, 47% more than the $379 million in FY 1996 sales. Offering quick procurement of commercially available off-the-shelf software, equipment and non-complex integration services, FAST was popular with customers. However, managing its rapid growth was cumbersome for GSA. FTS is addressing the factors that contributed to the program's problems, such as contractors' inability to meet the accelerated FAST schedule; late payment by the Defense Department, the primary FAST customer; a large volume of accounting transactions which had to be reconciled manually; and overlapping regional marketing. Late payments by the Defense Department resulted in severe cash shortages in the IT Fund and exposed a liquidity problem, which management reported as a material weakness in the FY 1997 Federal Managers' Financial Integrity Act Report. [See page 110.]

FTS awarded three Virtual Data Center Services contracts in FY 1997, to meet agency needs for data processing while furthering a White House objective to reduce by half the number of Government-managed data centers. Under the contracts, worth as much as $6 billion, agencies currently using IBM, Unisys, Digital Equipment, and Honeywell mainframes can order a full array of data processing services on a task order basis.

FTS developed a "seat management" program that will allow agencies to fully outsource all desktop automation services rather than purchasing equipment that can quickly become obsolete and need to be replaced. Seat management contracts, potentially worth billions of dollars, will be awarded in FY 1998.

Information Security

The Office of Information Security (OIS) provides worldwide information system security services and policy guidance for Federal agencies conducting national security and sensitive operations. In partnership with the National Security Agency, OIS provides digital signature and encryption for E-mail, and supports U.S. intelligence missions in Europe. OIS services are non-mandatory and reimbursable. Its $104 million in FY 1997 revenue is 70% higher than the FY 1996 revenue of $61 million.

OIS's Paperless Federal Transactions for the Public program is pilot-testing software that gives individuals access to their own Government records and allows them to conduct secure transactions on-line. The software is on a 3.5-inch "public key" diskette containing a "certificate" that identifies the user.

E-mail questions about this report to the Office of Communications

| Contents | Previous |Next|