'Networx offers exceeded our expectations in terms of the number and array of services proposed,' Edwards said in the statement. 'Additionally, the scope of the acquisition coupled with the industry response has added unforeseen challenges and additional time to our evaluation schedule. Thus, more time will be required for government-industry discussions and negotiations to ensure that GSA continues to offer agencies the best value contracts they have come to expect.'

The Networx program is designed to provide legacy and leading-edge voice, data and video services to all U.S. government agencies. The Networx Universal contract covers 37 domestic and international telecommunications services; and Networx Enterprise portion of the work is geared toward smaller carriers and is designed to provide a core set of IP and wireless services in particular geographic regions.

MCI Worldcom Inc., Sprint Nextel Corp., AT&T Corp. and Qwest Communications International Inc. have submitted proposals for the contract. The Networx program will replace a series of contracts known as the Federal Telecommunication System 2001 contracts (FTS2001), which will expire in 2007. MCI and Sprint hold the main FTS2001 pacts (see 'Feds Get Four Bids for $20B Telecom Contract')

In addition, in a special notice on the FedBizOpps.gov Web site, the GSA said it is extending the FTS2001 contracts for two years in order to avoid a disruption in service to government agencies. The contract for Sprint, which expires on Dec. 18, 2006, will be extended to Dec. 17, 2008, and the contract for MCI, which expires Jan. 11, 2007, will be extended until Jan. 10, 2009. The GSA can also elect to extend each contract for three additional six-month periods. The estimated values of the extended Sprint contract is $1.45 billion and the estimated value of the MCI contract is $1.65 billion.