Electronic Data Systems Gets HUD Pact

Associated Press
08.09.2004

Electronic Data Systems Corp. on Monday said the Department of Housing and Urban Development granted it a contract worth up to $750 million following multiple protests and a re-bid of the deal, which was first awarded last year.

Additional terms of the deal were not disclosed, but about 150 new jobs are expected to be created as a result of the contract, the company said.

The multiple-year, performance-based assignment to develop a nationwide information technology infrastructure and telecommunications service, called HUD Information Technology Services, includes up to nine additional option years.

The original contract was awarded Aug. 14, and a formal protest was filed on Aug. 22. In January, HUD said it would abide by a General Accounting Office recommendation to re-bid the contract, the company said.

Under the contract, Electronic Data will provide end-to-end IT services to 18,000 HUD users in more than 80 locations throughout the United States and its territories. Those services will include enterprise-wide data processing and management from mainframe down to desktop, information security, technology refresh, help desk, user support, disaster recovery, printing and distribution, Local Area Network and wide-area network services, wireless, TV/video conferencing, and Web administration.

The technologies are designed to improve HUD's customer service and track performance and customer satisfaction in real time.

Electronic Data is teaming with 13 small companies, including nine small and disadvantaged businesses in Maryland, Washington, Northern Virginia, and West Virginia.

Shares of the company recently traded up 12 cents at $16.84 on the New York Stock Exchange.

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