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By Mel Duvall
The Transportation Security Administration (TSA) has awarded a $493 million contract to Computer Sciences Corporation (CSC) to essentially manage and support its underlying technology infrastructure for five years.
The TSA said Wednesday that the contract covers a wide range of operational support services, including "IT security, solutions delivery, business activities and operational effectiveness throughout the nation, including all U.S. airports."
The win comes at a time when IT services companies are being snapped up by major hardware and software vendors, in part because of the cushion they provide during economic downturns. Earlier this week Xerox launched a bid to acquire Affiliated Computer Services (ACS) for $6.4 billion in a cash and stock deal. That move follows Dell's announcement last week that it plans to acquire Perot Systems for $3.9 billion. Those deals put Xerox and Dell on a more even footing with IBM and its large IT services arm, and HP, which bolstered its IT services division by acquiring EDS a year ago.
In recent days CSC, which is based in Falls Church, Va., has been named as a possible takeover candidate. The TSA contract has a one-year base period with four one-year options. "This program ensures that TSA can fulfill our mission at airports around the country using secure technology systems and receiving the support necessary to carry out our critical work," said chief information officer Emma Garrison-Alexander.
The contract represents a loss for CSC competitor Unisys. Unisys was chosen in 2002 to be the primary IT infrastructure provider for the TSA under a seven-year contract, valued at about $1 billion. However, the Department of Homeland Security, which covers the TSA, has tried to increase competition for large infrastructure contracts through its Enterprise Acquisition Gateway for Leading Edge Solutions, or Eagle, bidding process.
Unisys is due to release its third-quarter financial results Oct. 28, which should provide some insight into its efforts to replace the TSA contract. The Blue Bell, Penn.-based company in September said that it was competing for a contract with the Federal Emergency Management Agency that could be valued at up to $500 million over five years.
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