NASA Deal Proves Profitable for ACS, Intellisource

By Nick Wakeman, Staff Writer


JULY 14 ? Affiliated Computer Services Inc. of Dallas already is seeing dividends from its recent acquisition of the Intellisource Group of Vienna, Va. Intellisource has been tapped by NASA to provide desktop outsourcing services at four of its research centers.


The contract has an initial value of $120 million over three years, but could be worth $500 million if all the options are exercised.


ACS acquired Intellisource June 22. Terms of the deal were not disclosed, but ACS picked up about $100 million in new revenue and 680 employees. ACS had about $1.9 billion in revenue for the year ended March 31. About a third of the company's revenue comes from government customers.


In the NASA deal, which was awarded under the space agency's Outsourcing Desktop Initiative, ACS will provide desktop computer, networking and telecommunications services to NASA's Ames Research Center, Dryden Flight Research Center, Langley Research Center and Glenn Research Center. Science Applications International Corp. of San Diego is the principle subcontractor on the contract.


Intellisource already provides desktop outsourcing services at NASA's Goddard Space Flight Center. The company also is a subcontractor to SAIC for its desktop outsourcing work at NASA's Washington headquarters.


"Intellisource's technical solutions and past performance, buoyed by the strength of ACS, combined to make us a formidable enterprise outsourcing competitor," said William Woodard, president of Rockville, Md.-based ACS Government Solutions Group.