CSC's Large Project Pipeline - Analyst Blog

Computer Science Corporation (CSC) continues its winning streak. The most recent gain involves the $2.9 billion information technology infrastructure management service agreement with Zurich Financial Services Group for a period of 10.5 years. Under the terms of the contract, Computer Sciences will centralize Zurich Financial's data center and virtualize its server arrangement.

The extension of the agreement with UK's Royal Mail Group for the provision of cloud computing information technology (IT) services is also very important. The original agreement, signed in 2003, included the maintenance of its desktop computers and management of its servers, mainframes and IT processes. As per the extended contract, CSC will provide Royal Mail Group's 30,000 employees with access to new IT services using Microsoft's (MSFT) Business Productivity Online Suite (BPOS), a part of Microsoft Online Services. This apart, CSC will also provide help-desk support.

Third in line is the agreement with the U.S. Department of Health and Human Services (HHS), whereby the healthcare body awarded the company the Information Technology Infrastructure Operations indefinite-delivery/indefinite-quantity (IDIQ) contract, which has a three-year base period and four one-year options.

Under the terms of the contract, CSC will compete to provide Web services, including Internet and remote access to the HHS server, as well as hardware and software services such as network file sharing, data backup and restoring, help desk and desk side support, and network administration. This is expected to provide cost effective IT enterprise solutions to Health and Human Services. The company did not disclose what the contract was worth.

It also secured a contract with the U.S. Navy spanning five-years and worth $169 million for support to its littoral combat ship (LCS) acquisition program. As per the terms of the agreement, CSC will also provide production planning for LCS seaframes and combat systems currently under construction by Lockheed Martin (LMT) and General Dynamics (GD).

The company has also posted encouraging second quarter 2010 results, with revenue of $4.0 billion increasing 4.7% from $4.2 billion in the year-ago quarter. The global economy is on the rebound and so is IT spending by major companies. This is expected to positively impact the results of the company going forward.
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