It’s only the first step in a bureaucratic maze, but we’ll take progress where we can find it.

Telecommunications giant MCI, which used to be called WorldCom, could receive an estimated $700 million in annual revenue from contracts with the federal government.

The company shouldn’t receive one cent of taxpayer money.

On Friday, the General Services Administration informed Senate Governmental Affairs Committee Chairwoman Susan Collins that it had begun proceedings against WorldCom/MCI to determine if the company will be permitted to receive work from the federal government.

Collins had requested an investigation into the government’s dealings with the company. Collins also has asked for information from the U.S. Postal Service, the Department of Veterans’ Affairs, the State Department, the Department of Defense and the Department of Commerce about new contracts or contracts that were extended with the company during the last year.

WorldCom, you might remember, ran into a bit of trouble with the law and was found to have committed fraud to the tune of $9 billion. That translates to losses to shareholders of $175 billion.

Federal contracts are a valued prize for business. The jobs are often high profile and contractors can count on being paid and on the customer being around for a while. The jobs also can be big and bring in a great payday.

The government has an obligation to award contracts fairly and to contractors that can provide the desired services in a timely and economical fashion. But there is also an obligation to avoid dealing with companies of ill repute.

Legal, moral and ethical behavior should be a hallmark of companies that do business with the federal government. With the power of the purse, government has the opportunity to encourage appropriate behavior and punish cheats and scoundrels by not allowing them to participate in fat contracts.

MCI should be frozen out of government work until a time when the company can prove that it has reformed and has made some measure of restitution to those people who lost their savings because of misdeeds.

The government has a compelling interest in encouraging appropriate behavior by its partners. MCI is a good place to begin exerting that influence.

And, by the way, we also support legislative efforts by Pennsylvania Sen. Rick Santorum in regard to MCI.

According to a report in the Boston Globe, Santorum has pushed legislation that would block MCI’s attempt to get tax refunds on income it now admits it made up.

Every time MCI calls the feds looking for work, it should be a wrong number.

It’s time to hang up.


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