EDS has won the biggest IT outsourcing contract ever awarded by the US government, in a $6.9bn (£4.8bn) deal to revamp the IT systems of the US Navy and Marine Corps.
The five-year deal, with a three-year option, marks a major shift in the way the US Navy and Marine Corps use technology. EDS will replace dozens of disparate networks with an intranet, which the outsourcer and its partners Raytheon Co, WorldCom and WAM!NET will build, manage and own.
EDS chairman and CEO Dick Brown said, "Beginning with this contract, the federal government is well on its way towards employing the best practices from the commercial sector to improve defence readiness, while increasing savings for American taxpayers."
According to US naval secretary Richard Danzig, the Navy spends about $1.6bn a year operating its 360,000 desktop computers and 200 separate computer networks. The new system is projected to cost $1.4bn a year to operate and maintain.