Level 3 Communications (NYSE:LVLT, news, filings) picked up some federal business today. They’ve been selected by the GSA as a provider for the GRITS II contract. The indefinite-delivery, indefinite-quantity deal has an estimated potential value of up to $285M with a four year term plus six optional years.
The acronym GRITS loosely stands for GSA Region 4 Integrated Telecommunications Services, where region 4 is the southeastern US and the acronym conveniently but inexplicably sounds like a breakfast dish from the same region. As a provider for GRITS II, Level 3 will be able to bid on communications services contracts with federal agencies and other organizations able to use it.
Level 3 is not the only one with a GRITS II contract of course, tw telecom won a similar award last month. Both companies have extensive footprints in the region of course, it’s perhaps where they cross swords most frequently. But I’m curious where AT&T is on this one, as they are the 800lb gorilla down there.
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