The U.S. General Services Administration decided to spread the wealth further in awarding the second of its two Networx contracts, worth up to $20 billion over the next 10 years, naming AT&T, Level 3 Communications, Qwest Communications, Sprint and Verizon Business as winners.

That means the five companies will now compete for Networx Enterprise segment of the GSA contracts, which provide IP, optical and wireless services to government agencies. The Networx Enterprise segment of the contract covers only domestic communications and is much smaller than the $48 billion Networx Universal contract.

The second award is better news for Sprint, which had been a primary telecom contractor to the federal government for the last 18 years before being shut out of the earlier award. It is also a major step up for Level 3. Both must now compete for agency business with AT&T, Verizon and Qwest, the three winners of the larger Universal contract.

Sprint’s response to the news focused on its role in making the transition from the current FTS network to Networx, an all-IP offering. The company said it has created special tools to provide a “flexible, well-planned and cost-effective transition” and dedicated an experienced team of employees including Sprint personnel currently working with federal agencies.

“Our proposal brought together Sprint’s converged wireline and wireless assets, including a full suite of IP services supported by both our CDMA EVDO Rev. A and 4G WiMAX wireless platforms for a truly integrated access solution at very favorable costs,” said Tony D’Agata, vice president, Federal Government-Public Sector for Sprint, in a prepared statement. “this gives agencies the power to move to the next level of communications and be even more responsive to their constituents.”

No company is guaranteed business under either GSA award, just the right to compete for it.

“AT&T is ready to be the trusted partner to every agency that chooses to maximize their IP and wireless potential through Networx Enterprise,”said Don Herring, senior vice president, AT&T Government Solutions, in a prepared statement. “We have a solid track record of past performance and the IP and wireless expertise to help agencies reap the benefits of next-generation communications through Networx Enterprise. With our experience and personalized approach to transition, AT&T will help each agency manage its transition at its own pace and turn existing challenges into potential opportunities.”