Another federal network infrastructure deal was announced yesterday, as Windstream (NYSE:WIN, news, filings) took home a contract with the US Department of Veterans Affairs. They'll be providing voice, data, and internet services for the agency's Region 4, which overseas some 300 facilities of various types across 11 states in the Northeast.
The deal is worth a baseline of $12M, with extensions giving it a potential of $20M over five years. Windstream expects to have everything in place by the end of 2013. The company's combined CLEC/ILEC infrastructure gives it a broader reach, enabling it to be more competitive in the bidding for contracts of this sort.
The Veterans Administration has been under fire lately, in large part to the limitations of the antiquated infrastructure that it still runs on. A more modern network infrastructure is just one piece of the puzzle to fixing things, but it's a necessary piece. Similar contracts are likely to be awarded for the VA's other regions over time, it should be interesting to see who picks up the others.
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