No. 10: EDS embraces change

Change is good. If you're EDS Corp., you welcomeit, even embrace it.The Plano, Texas-based company spent thepast year expanding into new markets, bringingon new clients and even bringing in anew leader for its government business. Andthe coming year is expected to be more of thesame as the government unit sets its sights onwidening its reach in the professional servicesarea and making acquisitions.Dennis Stolkey, who was appointed vicepresident and general manager of the company'sU.S. government unit in September afterspending 22 years running commercial divisionsin EDS, wants to bring in more informationtechnology contracts. He said the unitshould even be willing to be a subcontractorinstead of a prime when it's appropriate. Thecompany will go after the Air Force Uni-Comm program and theTransportation SecurityAdministration's IT infrastructureprogram this year.The company also islooking at more acquisitions.Since the purchaseof Saber Corp. in 2007,which opened the doors tomore state and local work,the company wants to capitalizeon existing service offerings. EDS willbe looking at identity management, healthcare, cybersecurity, secure infrastructure, andcustomer relationship management.But with change comes challenges. AndEDS faces a few as it tries to expand itsalready considerable footprint in the federalmarket. It ranks No. 10 on this year'sTop 100 list with $2.5 billion in primecontracting revenue.Stolkey considers one of the unit'sbiggest hurdles to be preparing forupcoming changes in the White Houseand Congress."We're mapping out a strategy forwhoever wins," he said.Stolkey also talks of increasing competitionaround the Beltway for governmentIT dollars. EDS' strategy is to push itszero-outage mentality, which means itstechnology is never interrupted, and formmore strategic partnerships, especiallywith small businesses.Competition will be front and centerwhen EDS goes after the crown jewel onthe horizon: the next generation of theNavy Marine Corps Intranet contract.The company won the multibilliondollarcontract inOctober 2000 andwill recompete for thebusiness in 2010."We intend to do everythingethically and legallyto win that business,"Stolkey said. "It's animportant piece of businessfor EDS."The competition forthat work will be intense and rewinningNMCI will be vital for EDS, analysts said."This is going to be one of the biggest dealscoming up in the next five to 10 years in thefederal and Defense Department space," saidWarren Suss, president of Suss ConsultingInc., a federal IT consulting firm.The government unit broadened its work inhomeland security, intelligence, state and localgovernment, and defense in the past year. Theunit also welcomed 21 new clients, such as theCenters for Disease Control and Prevention,Pension Benefit Guaranty Corp. andEnvironmental Protection Agency.One of the biggest wins of 2007 was a$92 million task order from the Centers forMedicare and Medicaid Services' EnterpriseData Center, a major modernization project."Our strong value propositions are resonatingwith our clients," Stolkey said. "We'refocused on trying to achieve zero outages forour clients all the time, so that is really payingdividends."