GSA Initiates Suspension Proceedings Against WorldCom, Sen. Collins Releases Statement

WASHINGTON, D.C.- The General Services Administration (GSA) today notified Senate Governmental Affairs Committee Chairman Susan Collins (R-ME) that it has initiated suspension proceedings against WorldCom. The GSA’s actions are part of a formal process to determine whether WorldCom will be permitted to bid on or receive contracts with the federal government.

“I am hopeful that these proceedings, which GSA should have started months ago, will answer the question of whether the government should be doing business with WorldCom,” said Collins. “I’m reserving judgment on the ultimate question of WorldCom’s suitability as a federal contractor, and my investigation will continue.”

Earlier this year, Collins asked the GSA to begin an in-depth examination of whether the federal government had conducted a sufficiently thorough analysis of WorldCom’s financial and ethical dealings before deciding to contract with the company. The Governmental Affairs Committee oversees contracting with the federal government.

As part of the committee’s efforts to gather information about the government’s contracting process with WorldCom, Collins also has asked five other federal agencies for information regarding any contracts between the agencies and WorldCom initiated or extended within the last year. The agencies are the Postal Service, the Department of Veterans’ Affairs, the State Department, the Department of Defense, and the Department of Commerce.

“We need to make sure that the federal government is diligently reviewing the companies with whom it does business,” said Collins.