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U.S. Treasury Deals in AT&T

AT&T today announced that it won a contract from the U.S. Treasury Department to build and deploy the largest civilian agency network. The deal has a base of three years with the option for up to seven one-year extensions that could bring the total value of the contract to $1 billion.

The Treasury Communications Enterprise (TCE) contract, as it is formally known, will be executed by AT&T and a team of its subcontractors, including Accenture LLP, BAE Systems, DreamHammer, GTSI, SRA and Lucent Technologies.

AT&T will build out the TCE which all told encompasses tens of thousand of users and more than 1,000 domestic locations. According to AT&T, they'll be building a secure VPN that will handle all of the department's data, video and voice traffic. The network will also provide a Web-based interface, so Treasury users will have a common interface for help desk support, ordering, billing and network performance information.

"Fundamentally we're going to work on infrastructure," Lou Addeo, president of AT&T Government Solutions, said on a noon conference call.

He added that the contract is more than a traditional typical telecommunications contract in that it's a full service IT contract where AT&T's core network asset is also combined with network integration, security and a whole range of enhanced services.

Addeo described AT&T's core network asset as "a multi-protocol network which is private and secure and provides a unified network with a single interface to customers."

AT&T is no stranger to providing government solutions and has its fair share of wins this year.

"Today's news with the Treasury TCE contract is the latest in a string of major contract wins that we've experienced this year," Addeo said.

Together with partner Lockheed Martin, AT&T won a contract from the U.S. Postal Service in October, which will provide managed network services to more than 37,000 locations across the Postal Service enterprise. That deal could be worth as much $3 billion.

According to Addeo AT&T Government Solutions has won four to six major contracts this year and has inked many other smaller ones.