CSC Lands $915 Million in Federal Contracts

Giant systems integrator also expands worldwide business with launch of new global healthcare unit

In another sign that technology remains a bright spot in the U.S. economy, especially in the government vertical, giant integrator Computer Sciences Corp. announced that its North American Public Sector (NPS) business unit signed 71 previously unannounced contracts and subcontracts during its fiscal 2008 fourth quarter ending March 28. The contracts total an estimated $915 million if all options are exercised.

Separately, CSC launched a new unit serving the health care market. The new business will leverage core intellectual property to help clients such as  health care providers, health plans, medical device makers and others improve their clinical and business processes. The processes targeted include chain management, revenue cycle management, document management, claims processing and clinical trial management. The new business is headed by Deward Watts, who previously headed CSC's health practice in the Americas region.

CSC's spate of government contracts range in length from one month to 19 years. According to the company, civil agencies accounted for 31 awards totaling $416 million, while the U.S. Defense Department and its agencies accounted for 40 awards totaling $499 million.

"Our North American Public Sector business unit has had a strong fiscal year," said Michael Laphen, CSC's president and CEO in a prepared statement.  "By leveraging complementary resources from across the company and focusing on its core services and areas of expertise, NPS is delivering effective and innovative results for our government clients."

CSC is providing a wide range of business and IT services under the contracts. These include analysis, systems integration and modernization, consulting, engineering, outsourcing, training, maintenance and logistics support for a diverse base of clients in the law enforcement and intelligence communities; the National Aeronautics and Space Administration; Departments of the Navy, Army and Air Force; Department of the Treasury; Health and Human Services; Environmental Protection Agency; Department of Transportation; and State Department.

The new global healthcare business initiative is designed to enhance CSC's position in transforming the healthcare industry by using information to improve healthcare outcomes, decision making and operating efficiency.

The company said the Healthcare Sector will leverage core intellectual property to help clients innovate new or enhanced clinical and business processes. The group is bolstered by last year's acquisitions by CSC of First Consulting Group, an IT services organization focused on healthcare and Covansys, which strengthened CSC's offshore domain expertise.

The healthcare business will provide clients with onshore and offshore expertise supporting major clinical information systems, claims processing systems and enterprise content management systems used by the healthcare industry, according to CSC. In addition, application management services and business process outsourcing offerings will be supported from CSC's healthcare centers in Bangalore and Chennai, India.

"Organizing CSC's global healthcare resources into a single vertical organization better positions CSC to help our clients use information to transform healthcare," said Watts. "Our main focus will be delivering IT-based innovation that improves patient outcomes and the decision making of providers, payers and life sciences organizations."

CSC's Laphen noted that the dedicated healthcare services business supports CSC's growth strategy. "The new business unit places CSC's commercial healthcare business under common leadership and allows for closer coordination between the public sector and commercial healthcare practices."

CSC is a large systems integrator and IT services company with 91,000 employees worldwide. The company reported $16.1 billion in revenue during 2007.

TAGS: services,management,economy,healthcare,federal government

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