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<classification authority="sudocs">GA 1.13:GAO-02-325</classification>
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 <subject>Fees</subject>
 <subject>Government contracts</subject>
 <subject>Prices and pricing</subject>
 <subject>Telecommunication</subject>
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<titleInfo>
 <title>Telecommunications: GSA Action Needs to Realize Benefits of Metropolitan Area Acquisition Program</title>
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<abstract>Telecommunications: GSA Action Needs to Realize Benefits of
Metropolitan Area Acquisition Program (04-APR-02, GAO-02-325).	 
                                                                 
The Metropolitan Area Acquisition (MAA) program provides local	 
telecommunications services to federal agencies in certain U.S.  
cities. The General Services Administration (GSA) began the	 
program in 1997 to achieve immediate, substantial, and sustained 
price reductions for local telecommunications for agencies; to	 
expand their choices of high-quality services; and to encourage  
cross-agency sharing of resources. Service providers that are	 
awarded contracts under the program are allowed to compete for	 
GSA&apos;s FTS2001 long distance service contracts, so that federal	 
agencies may potentially acquire end-to-end local and long	 
distance telecommunications services from one source. Only 5 of  
the 19 metropolitan areas that were scheduled to switch from	 
existing services to MAA services by or before March 1, 2002,	 
have done so.  Although the program was intended to take	 
advantage of emerging competition in the local telecommunications
market, it has been beset by implementation challenges, including
access and use of building riser cabling, the transfer of local  
numbers between service providers, and a contractor&apos;s financial  
problems. On top of the cost of the contract services, GSA	 
charges customer agencies fees that range from about nine to 97  
percent or from $1.20 to $8.49 per line per month. Because GSA	 
does not disclose its management fees unless asked, customer	 
agencies do not necessarily have complete information to help	 
them determine whether using GSA&apos;s full range of services is	 
their most cost-effective approach. As of March 2002, GSA has	 
allowed its MAA and FTS2001 contractors to offer services in both
the local and long distance markets, a process termed		 
&quot;crossover.&quot;</abstract>
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<identifier type="preferred citation">GAO-02-325</identifier>
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 <topic>Contract administration</topic>
 <topic>Cost control</topic>
 <topic>Federal procurement</topic>
 <topic>Fees</topic>
 <topic>Government contracts</topic>
 <topic>Prices and pricing</topic>
 <topic>Telecommunication</topic>
 <topic>Telecommunication industry</topic>
 <topic>Federal Telecommunications System 2001</topic>
 <topic>FTS 2001</topic>
 <topic>GSA Metropolitan Area Acquisition</topic>
 <topic>Program</topic>
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  <title>United States Statutes at Large</title>
  <partNumber>Volume 100 Page 1783</partNumber>
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 <identifier type="Statute citation">100 Stat. 1783</identifier>
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  <title>United States Public Law 500 (99th Congress)</title>
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 <identifier type="public law citation">Public Law 99-500</identifier>
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