FTS 2000: GSA's Price Redetermination Yields a Reasonable Decision and Lower Prices

Pursuant to a congressional request, GAO reviewed the General Services Administration's (GSA) Federal Telecommunications System (FTS) 2000 Price Redetermination/Service Reallocation (PR/SR), focusing on whether: (1) GSA made a reasonable PR/SR decision; (2) the vendors' proposed prices were fair and reasonable; (3) FTS 2000 prices were below the lowest known commercial prices; (4) adequate controls exist to ensure that FTS 2000 prices will remain competitive with commercial prices; and (5) GSA made, separate from PR/SR, a reasonable determination not to allocate 100 percent of the FTS 2000 business to either vendor.