US Treasury cancels $1bn AT&T deal

The US Treasury has been forced to cancel a $1bn (£540m) communications contract with AT&T after an investigation into the...

The US Treasury has been forced to cancel a $1bn (£540m) communications contract with AT&T after an investigation into the bidding process by the US Government Accountability Office (GAO).

The contract was only awarded last December, and the Treasury will now have to acquire its communications via alternative existing government procurement processes.

The GAO launched an investigation into the three-year deal after complaints about the contract award from rival bidders, including MCI, Qwest and Level 3.

While the nature of their complaints has not been disclosed by the GAO, AT&T seems to have accepted the decision for now, and said it would try and win the business again via the alternative procurement processes.

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