As you know, telecommunications services are increasingly critical in transforming the way the federal government conducts business, communicates internally and externally, and interacts with citizens, industry, and state, local, and foreign governments. Electronic government services based on reliable, secure, and cost-effective telecommunications can enable agencies to streamline the way they conduct business, reduce paperwork and delays, and increase operational efficiencies. They also offer the potential for building better relationships between government and the public by making interaction with citizens smoother, easier, and more efficient. Accordingly, it is important that a far-reaching program like the FTS2001 program take full advantage of new services offered by industry; that agencies effectively and efficiently implement these telecommunications services to improve operations; and that the program be successfully implemented in order to maximize benefits to the taxpayers. The FTS2001 program is the successor to FTS 2000, which provided long distance telecommunications services to federal agencies. While federal agencies were required to use the FTS 2000 program for their long distance telecommunications, FTS2001 is not mandatory. The program relies instead on its ability to provide good services at low prices as a means of attracting and retaining federal customers. Under the FTS2001 program strategy, the General Services Administration (GSA) would also award contracts for local-area telecommunications services and ultimately might allow those contractors to offer both local and FTS2001 long distance services.