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4 Reaching Agreement with the Office of Management and Budget
Pages 26-30

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From page 26...
... At the time of Telpak's demise, GSA had gone to OMB acting as a spokesman for its customer agencies to seek a supplementary appropriation for the almost $100 million shortfall due to AT&T's tariff raises. OMB did not accede to that request, placing the shortfalls on the shoulders of the agencies, effectively causing them to question FTS cost and service.
From page 27...
... The December letter was to be only one of many from OMB, though all were signed by highly placed political appointees ready to let their staff handle the FTS in the intervening time before GSA gained a new administrator (Note 3~. GSA held many meetings with OMB to explain the complexities associated with shutting down the old FTS.
From page 28...
... Golden was a member of the Reagan administration's establishment and so he had access to, and the confidence of, decision makers at OMB. The process he described of independently evaluating FTS2000 for himself before reaching a conclusion satisfied the OMB management and provided a procedure for all parties to reach agreement, including a participatory mechanism for the OMB permanent staff.
From page 29...
... In conclusion, they said that the multi-vendor strategy would ensure considerably more competitive bidding and increased competitive pressures on the winning vendors following contractor award. They admitted that the change would result in slowing the procurement and introducing new complexities which could reduce the efficiency of the procurement and the system transition.
From page 30...
... However, GSA had observed that, even in the case of the old mandatory FTS, when user agencies suffered enough from high-cost and low-quality services they were prepared to take the drastic actions needed to remove themselves from the system. GSA felt that if this was true under the inflexible environment of a mandatory hardware system, it would be even easier under the proposed services contract.


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