MobileAccess loses House in-building contract

The U.S. House of Representatives said it canceled MobileAccess Networks’ in-building wireless license and add-on business to improve cellphone coverage in the House because of concerns about the bidding process being tainted by the lobbying scandal that resulted in guilty pleas by disgraced lobbyist Jack Abromoff, former House Administration Committee Chairman Bob Ney (R-Ohio) and others.
Last fall, the House Administration Committee suspended the wireless license agreement between the House and MobileAccess so it could review the facts surrounding the bidding and selection processes. Janice Crump, a spokesperson for the House Administration Committee, confirmed the MobileAccess agreement and business-expansion amendment to it were terminated on Nov. 14. The Politico, a news daily that reports on Congress, first reported on the House breaking ties with MobileAccess.
“At the present time, the CAO [Chief Administrative Officer] is reviewing a proposal from cellphone providers. A decision has not been made as to the licensing/contract mechanism to be used going forward,” stated a House official in an e-mail from Crump. The e-mail went on to say that the “license amendment for the Capitol and the Capitol Visitor’s Center expansion was terminated because of the questions concerning Mr. Ney’s awarding of the original license to MobileAccess. MobileAccess participated and cooperated fully with the review of the licensing process.”
Information provided by Crump explained that the original contract was a beneficial occupancy license granted to MobileAccess to install the wireless system and then sell individual slots to wireless providers.
The installation itself was paid for by the mobile phone operators by purchasing a slot in the system. Other than manpower time for the purpose of review of the system and installation coordination, the House has not paid any money towards the installation of the system.
Instead of charging MobileAccess lobbying fees, Abramoff confessed to ordering MobileAccess to make payments totaling $50,000 to a tax-exempt group he created. However, congressional lobbying disclosure records show that MobileAccess paid more than $120,000 during the past several years to the Greenberg Traurig law firm that previously employed Abramoff and former Ney aide Neil Volz. Last May, Volz plead guilty to one count of conspiracy in the influence-peddling scandal.
MobileAccess, founded in 1998 in Israel as Foxcom Wireless before moving its headquarters to Vienna, Va., still has the Senate in-building wireless contract. Neither MobileAccess nor any of its employees were targets of the Justice Department investigation. MobileAccess was represented on Capitol Hill by Abramoff’s former law firm.
MobileAccess bested San Jose-based LGC Wireless for the House in-building wireless business, estimated to be worth between $2 million and $3 million. Both are respected mainstays in the in-building wireless space.
When contacted, John Spindler, vice president of marketing at LGC Wireless, said he was not aware the House had terminated the MobileAccess wireless license agreement/amendment, and that a new procurement had begun.
Crump explained new efforts to reform the bid process. “The CAO has submitted an RFP for a Managed Wireless Service,” she told RCR Wireless News. “That means the House would like to get out of the business of procuring and managing cellphone use. The MWS would make contact with any number of vendors, and handle all issues related to providing service to the House. There will be no interruption of cellphone service in the House, nor will there be a degrading of service. The wireless management firm would bundle all of the services and handle the process for the members. There would be one person who would be a point-of-contact, and integrate the services of the providers. There would also not be a contract.”