By Stephen Barr and Mike Mills
Washington Post Staff Writers
Saturday, March 8, 1997; Page A04

Rep. Dan Burton (R-Ind.), who chairs the committee that will oversee the award of the next governmentwide phone contract, played in a Pebble Beach, Calif., golf tournament sponsored by AT&T Corp., which currently provides telephone services under contract.

AT&T did not pay for Burton's travel expenses, but held a fund-raiser at the tournament for the eight-term lawmaker and contributed $2,000.

Federal officials are preparing a telecommunications contract worth at least $10 billion. Phone companies have been lobbying over its provisions for several months. The current federal phone contract expires in December 1998.

Burton, an avid golfer, played in the charity tournament last month in a group of four that included AT&T Corp. Chairman Robert E. Allen and professional golfer Mark O'Meara.

Burton "was not influenced in any way" and "was not lobbied" by Allen on the federal phone contract, Burton spokesman Kevin Binger said yesterday when asked about the AT&T event. He said Burton has taken no position on the phone contract and wants only "what gets the best deal for the taxpayers."

Burton and Burton's campaign shared the cost of the trip to California, Binger said. AT&T waived the entry fee, which is allowed for charity tournaments under House rules, he said.

AT&T spokesman Jim McGann said the company was approached by Burton last year about playing in the tournament. The lawmaker was put on the playing roster in August, McGann said, before he became chairman of the Government Reform and Oversight Committee.

"In our view, this is purely a member of Congress with an interest in playing golf," McGann said. "He obviously was scrupulous about his expenses."

The Burton panel is investigating fund-raising practices in the 1996 presidential campaign, but Burton has ruled off-limits a review of possible congressional campaign abuses.

AT&T is competing against other carriers, including Sprint Corp., MCI Communications Corp. and the regional Bell companies, for the right to be the main company providing communications services to the federal government, the largest single user of telecommunications services in the nation.

During the last campaign, AT&T donated $7,000 to Burton. He also received a $4,000 donation from Indiana's regional phone company, Ameritech Corp., and $1,000 from Bell Atlantic Corp., Binger said. Burton also played in an Ameritech-sponsored golf tournament in Chicago in 1994, the spokesman said.