7th Annual Top 100 Federal Prime Contractors Information Technology Services
Contents<@VM>Companies Ride the E-Gov Tidal Wave<@VM>Past Top Tens<@VM>Top 100 Contractors List<@VM>Recent Deals Reshaping the Federal Market<@VM>Contracts to Watch<@VM>How We Compiled the List<@VM>1: Lockheed Martin Corp.<@VM>2: United Space Alliance LLC<@VM>3: Computer Sciences Corp.<@VM>4: Boeing Co.<@VM>5: Raytheon Co.<@VM>6: AT&T Corp.<@VM>7: General Dynamics<@VM>8: TRW Inc.<@VM>9: Science Applications International Corp.<@VM>10: Northrop Grumman Corp.<@VM>11: Unisys Corp.<@VM>12: IBM Corp.<@VM>13: Electronic Data Systems Corp.<@VM>14: Litton Industries Inc.<@VM>15: Booz-Allen & Hamilton Inc.<@VM>16: Dell Computer Corp.<@VM>17: Government Technology Services Inc.<@VM>18: BAE Systems Plc<@VM>19: Sprint Corp.<@VM>20: Bell Atlantic Corp.<@VM>21-40<@VM>41-60<@VM>61-80<@VM>81-100
Companies Ride the E-Gov Wave
This year's list of top government information technology providers contains some regular faces and several rising stars as many companies continue to grow through acquisitions, while others divest unwanted units. Charts show the the last seven years of companies that made the top 10, deals that are reshaping the federal market and contracts worth watching.The Top 20
Profiles of Washington Technology's top 20 federal prime contractors in IT reveal their revenue, future plans and goals, teaming partners and competitors, and analysts' critiques.The Rest
Companies 21 to 100 are listed in numerical order and include address, Web site and total value of contracts won. By Nick Wakeman
The companies that pack Washington Technology's 2000 Top 100 see a government marketplace brimming with opportunities surrounding electronic government, information assurance and outsourcing.
With the year 2000 bug extinguished with barely a whimper, these project areas will be the ones attracting attention and money in the coming year and beyond, according to industry officials.
This year's list of top government information technology providers contains some regular faces and several rising stars, as many companies continue to grow through acquisitions while others divest unwanted units.
Lockheed Martin Corp. of Bethesda, Md., is in a familiar position, retaining the No. 1 spot for the sixth consecutive year with about $2.4 billion in contract obligations during fiscal year 1999.
At No. 2, with $1.5 billion, is United Space Alliance. The alliance, a Lockheed Martin-Boeing Co. joint venture that runs space shuttle operations for NASA, holds on to the second spot for the third consecutive year.
Other regulars at the top of the list include Computer Sciences Corp. (No. 3), AT&T Corp. (No. 6), TRW Inc. (No. 8), Unisys Corp. (No. 11) and Electronic Data Systems Corp. (No. 13).
The Top 100 is culled from General Services Administration data by the market research firms Federal Sources Inc., Vienna, Va., and Eagle Eye Inc., Fairfax, Va.
But whether a regular or a first-timer to the Top 100, all of the companies are striving to serve government customers pressured by procurement reform, government staff reductions and growing demand for new services.
In the coming year, company officials expect to see more outsourcing opportunities and more agencies turning to the Internet as a way of delivering services to citizens and interacting with other agencies, businesses and within the same agency.
The move toward electronic government has lagged behind the private sector, said Todd Ramsey, general manager of Global Government Industry for IBM Corp., Armonk, N.Y. But he and other executives see that attitude changing now that Y2K is over.
"The government is still trying to figure out what e-commerce means, but, bar none, it will be the biggest issue of the year," said Toni Ann Thomas, executive vice president of the Government Systems Group for Affiliated Computer Services Inc. of Dallas (No. 21).
"Electronic government is going to change the way we interact with the government and how the government buys goods and services," said Herbert Andersen, president and chief executive of Logicon Inc., the IT unit of Northrop Grumman Corp. of Los Angeles (No. 10).
Many traditional government IT companies have formed alliances with commercial electronic commerce providers to bring those capabilities to the government marketplace.
For example, IBM is working with i2 Technologies Inc. and Ariba Inc. to create electronic government solutions. ACS' government group has signed pacts with SupplierMarket.com and Volumebuy to go after the government aggregation and reverse auction market.
Tied closely to electronic commerce is information assurance. "You can't do e-commerce without IA," Thomas said.
Information assurance touches nearly every IT project the government undertakes, and has become a regular headline grabber when government and commercial systems come under attack.
Prime contractors with heavy defense expertise could benefit in 2000 from the government's increasing focus on information assurance and public key infrastructure capabilities.
"We think the whole security area provides a lot of opportunity," said Richard Knop, partner at the investment banking firm Boles, Knop & Co., Middleburg, Va.
One contract sure to get a lot of attention when it is awarded later this year is the $1.5 billion Defense Department Information Assurance Services contract to provide information assurance and security services to the military and other agencies. Up to 10 companies are expected to win a piece of the contract when it is awarded by the end of 2000.
"The focus has really shifted from Y2K to paying a lot of attention to security," said Otto Guenther, who runs the federal business for Computer Associates International Inc. of Islandia, N.Y. (No. 56).
Modernization efforts also will be a trend to follow in the coming year. The U.S. Customs Service has a $2 billion effort that is drawing attention from the likes of Computer Sciences Corp., EDS, IBM and Science Applications International Corp.
In the military, there are efforts such as the Air Force's Integrated Space Command and Control contract to modernize the command and control systems at the North American Aerospace Defense Command and the Air Force Space Command in Colorado Springs, Colo. Another potentially huge military modernization opportunity in 2000 is the Army's Warfighter Information Network Tactical (WIN-T) effort, which is potentially worth $5.2 billion over 15 years.
"One of the trends on the defense side is the rapid and continued focus on battlefield awareness," said Phillip Odeen, executive vice president of TRW's Washington operations.
All the services are working on projects to connect frontline equipment such as ships, tanks and planes through tactical intranets, Odeen said. The idea is to create better awareness of what is happening on the battlefield.
"There are a lot of dollars going there," Odeen said. "These are sophisticated solutions that are difficult and challenging, so systems integrators have an important role to play."
The Department of Defense also is leading the way in terms of government outsourcing and the use of A-76 studies, which look at whether it is more effective to keep a function in house or outsource it to the private sector.
At the end of 1999, the Army finally awarded its Wholesale Logistics Modernization contract, worth $680 million over 10 years, to Computer Sciences Corp. The National Security Agency also is considering outsourcing its IT operations in what could be a multibillion dollar contract.
These are very encouraging signs, said Edward Rollin, vice president of internal operations for the IT group at Litton Industries Inc. of Woodland Hills, Calif. (No. 14).
"As this trend continues, it will be a vital part of the growth of our industry," he said.
One of the biggest outsourcing projects on the IT horizon, the $10 billion Navy/Marine Corps Intranet contract, has drawn a virtual who's who of companies on the Top 100. The Navy and Marine Corps want to outsource voice, video and data networking, desktop computers, hardware, software, services and training for more than 400,000 seats, or computer users. An award is expected by the end of June.
Teams are being led by Computer Sciences Corp., General Dynamics Corp. (No. 7), IBM (No. 12) and EDS. And many of their teammates also are well-represented on the Top 100.
Computer Sciences Corp. has Bell Atlantic Corp. (No. 20) and Dell Computer Corp. (No. 16) on its team. EDS' team includes MCI WorldCom Inc. (No. 46) and Raytheon Co. (No. 5). General Dynamics has tapped Harris Corp. (No. 27), PricewaterhouseCoopers (No. 48), Sprint Corp. (No. 19), Unisys and Getronics' Wang Government Services Inc. (No. 25).
The IBM team includes AT&T Corp., Lucent Technologies Inc. (No. 31), BAE Systems Plc (No. 18), and Lockheed Martin.
The work force shortage will hit the government harder than the private sector and will force agencies to outsource more functions, said Chip Mather, senior vice president of Acquisition Solutions Inc. of Chantilly, Va. Acquisition Solutions provides acquisition consulting services to government agencies.
Agencies also will turn to more seat management offerings as a way of controlling their IT costs, he said.
"We are seeing an evolution of outsourcing toward partnering," Mather said. "Now it's not the IT, but the results you get with the IT."
Mergers and acquisitions also continue to reshape the government marketplace and the names on the Top 100. Two new names burst into the Top 20 this year.
General Dynamics made a dramatic move on the list this year, vaulting from the No. 86 spot in 1999 to No. 7, thanks in large part to its $1 billion acquisition in September 1999 of three government IT divisions from GTE Corp. of Irving, Texas.
BAE Systems Plc of Farnborough, England, did not even exist last year. It was created when General Electric Co. Plc merged a large portion of its defense operations with British Aerospace, creating a $20 billion global defense and systems integration company.
General Dynamics is building its IT division as a way to enhance its ability to provide integrated defense platforms and telecommunications services, said Gordon England, executive vice president for Information Systems and Technology.
The IT unit also supports General Dynamics aerospace, marine systems and combat systems lines of business. "But also unto itself [it] is a terrific business in terms of growth," he said.
Meanwhile, GTE fell from No. 12 in 1999 to No. 82 this year because of the sale of the divisions to General Dynamics and the sale of another government IT unit to DynCorp of Reston, Va. (No. 24) GTE divested much of its government business to concentrate on its core commercial telecommunications markets.
Even deeper in the Top 100 list, there are more signs that mergers and acquisitions are creating new players in the market, such as McBride & Associates (No. 44) and Veridian (No. 61). Both companies are making their first appearances in the Top 100, helped in large part by major acquisitions they made in 1999.
McBride bought Marconi Enterprise Solutions Inc. from General Electric Co. Plc in June 1999, and Veridian closed three deals in a single day last September, picking up $322 million in revenue.
Most of the activity will continue to be among the small and midsized companies with under $500 million in annual revenue, Knop said.
TRW's Odeen said mergers and acquisitions will continue, but "I think we'll see some divestitures at the bigger companies as they try to focus on core markets."
Indeed, Lockheed Martin, the king of mergers and acquisitions during the 1990s, is looking at the possibility of selling off the unit that does most of its state and local government information technology work, company officials said. Lockheed Martin already has sold one of its energy divisions and is selling its controls unit to BAE Systems. The deals are part of a broad restructuring of the company.
"The reorganization has had the benefit of refocusing the company on its core customers and is leading us through this divestiture process," said Robert Coutts, executive vice president of Lockheed Martin Systems Integration Business. "We wanted to move more to a systems integration view of the world, which is the view we have always had in our naval business."
Raytheon Co. is another company looking to divest non-core portions of its business.
Companies are making acquisitions to bolster their capabilities and add new customers where they see the market going. Northrop Grumman's Logicon unit, for example, acquired DPC Technologies Inc. last year as a way to gain new intelligence community customers.
AT&T bought GRC International Inc. of Vienna, Va., to pick up professional services capabilities. And Computer Sciences Corp. bought Nichols Research Corp. of Huntsville, Ala., to gain a broader foothold in intelligence, missile defense and space work.
"As long as the economy is strong, and there is a lot of liquidity in the market, consolidation is going to continue," Knop said.1994
2. Electronic Data Systems/Hughes*
3. Unisys Corp.
4. IBM Corp.
5. Computer Sciences Corp.
8. Rockwell International
9. Harris Corp.
10. Boeing Co.
* Hughes and EDS were both owned by General Motors.1995
1. Lockheed Martin Corp.
2. Loral Corp.
4. Northrop Grumman Corp.
5. Computer Sciences Corp.
6. Unisys Corp.
8. Science Applications
9. Harris Corp.
10. PRC Inc.1996
1. Lockheed Martin
2. Computer Sciences Corp.
3. Northrop Grumman
1. Lockheed Martin
3. Northrop Grumman
4. Computer Sciences Corp.
10. Brown & Root1998
1. Lockheed Martin
2. United Space Alliance
3. Hughes Electronics
4.Computer Sciences Corp.
7. Digital Equipment Corp.
8. Northrop Grumman
1. Lockheed Martin
2. United Space Alliance
5. Computer Sciences Corp.
9. Affiliated Computer Services
1. Lockheed Martin
2. United Space Alliance
3. COMPUTER SCIENCES CORP.
7. General Dynamics Corp.
10. Northrop GrummanClick here to view the Top 100 Federal Prime Contractors List
Anteon Corp. acquires Analysis & Technology Inc. for $104 million, picking up $170 million in annual revenue.
AT&T Corp. buys GRC International Inc., adding $200 million in revenue.
Carlyle Group acquires EG&G Inc. for $250 million, picking up about $500 million in revenue
Computer Sciences Corp. buys Nichols Research for $391 million, adding $455 million in revenue.
DynCorp acquires one unit of GTE Information Systems for $170 million, adding about $235 million in revenue.
General Dynamics Corp. acquires three units of GTE Government Systems for $1.05 billion, picking up $1.2 billion in revenue.
General Electric Co. Plc merges with British Aerospace creating BAE Systems Plc, a $20 billion global defense and systems integration company.
Getronics NV of the Netherlands buys Wang Global for $2 billion, picking up $3.1 billion in revenue, including $750 million in revenue from government work.
Science Applications International Corp. buys Boeing Information Services for $150 million, picking up $300 million in revenue.
Titan Corp. buys Advanced Communications Systems Inc., picking up $218 million in revenue. A deal is pending to acquire AverStar Inc. and another $230 million in revenue.
Veridian Inc. closes three deals, buying Trident Data Systems, MRJ Technology Solutions and ERIM International, adding $322 million in revenue.Navy/Marine Corps Intranet
Desktop and network infrastructure outsourcing contract. Worth at least $10 billion. Award expected by the end of June. Defense Information Assurance Services
Information assurance and security services contract for the military and other agencies. Worth about $1.5 billion. Award expected by the end of 2000.Customs Modernization
IT modernization and business process re-engineering for Customs Service. Worth about $2 billion. Air Force Integrated Space Command and Control
Modernization contract to integrate command and control systems at North American Aerospace Defense Command and the Air Force Space Command. Worth $1.8 billion. Award expected by end of 2000.Army's Warfighter Information Network-Tactical
Contract to build the backbone for the Army's tactical command and control systems. Worth $5.2 billion over 15 years. RFP expected in August or September.FAA Telecom Infrastructure
Contract to integrate and manage the FAA's telecommunications networks. Worth $2 billion over 10 years. Award expected by end of 2000.This year's Washington Technology Top 100 list was compiled by employing the services of two Northern Virginia market research firms and using the federal government's product service codes.
There is no magic formula for developing the Top 100 list. Our goal is to select those product service codes that give the most complete and accurate snapshot of government spending on information technology, telecommunications and systems integration work. After setting the parameters, we sift through the data.
Here are two frequently asked questions about the Top 100.How was the list prepared?
The list is compiled by Federal Sources Inc. of McLean, Va., and Eagle Eye Inc. of Fairfax, Va., using data reported by federal agencies to the Federal Procurement Data Center.
These agency reports include dollars obligated to prime contractors during fiscal 1999 that are worth more than $25,000. They do not include agency spending to subcontractors, because the government does not collect that data. They do include reported General Services Administration schedule spending.
Eagle Eye and Federal Sources worked together to extract from the data all agency spending for information technology and telecommunications as indicated by 66 technology-related product service code classifications selected by Washington Technology. All three organizations worked to account for mergers and acquisitions.
About 65 agencies report contract obligations to the FPDC. Agencies that do not report include the Postal Service, the legislative branch and the judicial branch. Spending for most intelligence work also is not reported.Why is the figure shown for my company different from my company's federal revenue figure?
There are several reasons why the figures are different. The most common reasons are:
?Your company's federal revenue figures may include revenue derived from your work as a subcontractor; the FPDC data reports spending to prime contractors only.
?Your company's federal revenue figures may report the estimated life cycle or award value of contracts won during the year. The FPDC data covers only actual obligations (spending) made during federal fiscal year 1999.
?The federal agencies reported some of your company's work under a product service code that is not one of the 66 IT/telecommunications-related PSCs selected by Washington Technology for the Top 100 analysis.
?The federal agencies holding your prime contracts did not fully report spending under those contracts to the FPDC, or you had revenue from non-reporting agencies, such as the Postal Service, legislative and judicial branch agencies or spending on intelligence work.
6801 Rockledge Drive, Bethesda, Md. 20817 ? www.lmco.com $2,395,192,000
By Nick Wakeman
Lockheed Martin Corp. may have been racked with a falling stock price, underwhelming earnings reports and other performance woes during 1999, but the company easily hung onto the top spot in the Washington Technology Top 100 list for 2000.
For the sixth year running, Bethesda, Md.-based Lockheed Martin retained its crown with about $2.4 billion in information technology contract obligations during fiscal 1999, virtually the same amount that landed it atop last year's list.
Overall, the world's largest defense contractor had $25.5 billion in 1999 revenue, down 3 percent from 1998. Net earnings took an even bigger plunge, dropping to $382 million in 1999, from $1 billion in 1998.
But despite its struggles, Lockheed Martin still scored important information technology wins and continues to see the government IT and systems integration market as an important place to do business, company officials said.
"We had several wonderful wins," said Robert Coutts, executive vice president in charge of Lockheed Martin Systems Integration Business.
Among its marquee accomplishments of the past year were winning a $300 million Marine Corps contract to build a flight simulator system for all Marine aircraft, including helicopters, fighters and tankers. Lockheed Martin also won a $250 million contract with NATO to develop a missile defense system.
The company became the lead systems integrator for the Navy's next-generation aircraft carrier. Lockheed Martin will oversee the installation and integration of all the weapons systems and information systems that will go into the CVNX, the designation for the new class of carriers.
Lockheed Martin also made the first cut on the $1.8 billion, 10-year Air Force Integrated Space Command and Control contract. Lockheed Martin and TRW Inc. of Cleveland each passed the down-select phase and now are competing head to head for the lucrative contract.
Besides chasing high-dollar contracts, Lockheed Martin also realigned its businesses in October 1999. The company reduced the number of business areas from five to four to streamline operations.
Most of the Information and Services sector, a $6 billion business run by Arthur Johnson, was merged with the Electronics sector to form the Systems Integration Business Area under Coutts. Johnson's new role is finding how best to unlock the value of IT operations that serve the state and local government and commercial markets.
"I picked up the software intensive businesses: air traffic management, missions systems and information systems," Coutts said. The Systems Integration Business Area is the largest part of Lockheed Martin, with about $11 billion in 1999 revenue.
The company also has been making moves to divest $1.4 billion in businesses it does not consider to be core. In December 1999, Lockheed Martin sold Hanford Corp., an environmental management prime contractor, to CH2M Hill Companies Ltd. of Englewood, Colo., for an undisclosed amount.
In April, the U.S. division of BAE Systems Plc of Farnborough, England, bought Lockheed Martin Control Systems, a supplier of electronics controls for the commercial and military markets, including aircraft, space and ground transportation systems. That deal was valued at $510 million.
The company also is considering the sale of its Information Management Systems unit that handles most of the state and local information technology services Lockheed Martin provides, Coutts said. That unit brings in about $500 million a year.
"The reorganization has had the benefit of refocusing the company on its core customers and is leading us through this divestiture process," he said. "We wanted to move more to a systems integration view of the world, which is the view we have always had in our naval business."
What Lockheed Martin's customers should see is a company rededicated to the government market, particularly the Defense and Energy departments and NASA, and a business that clearly knows who its core customers are, Coutts said. "I think that we are already seeing that," he said, noting that in his business area, performance ratings and award fees already are rising.
In its first quarter 2000 earnings report, which came out April 25, Lockheed Martin was able to report some improvements from the end of 1999. The company increased its 2000 earnings per share outlook from $1 to $1.05. The company also has reported several large orders for F-16 fighters from Greece and the United Arab Emirates.
"They are turning around to some degree, but there is a long way to go," said Paul Nisbet, an analyst with JSA Research Inc. in Newport, R.I., noting that the earnings outlook is still much lower than 18 months ago.
The government partly is to blame for Lockheed Martin's woes, Nisbet said. He said a recent study found that the Defense Department has realized $3 billion in savings from the consolidation of the 17 companies that are now part of Lockheed Martin.
"The government is keeping a large portion of any savings created from the mergers and acquisitions," Nisbet said.
But Nisbet also blames a lack of management controls as those mergers and acquisitions took place.
In addition to the realignment to streamline and refocus the company, Lockheed Martin Chairman and Chief Executive Vance Coffman also brought in Louis Hughes in April to serve as president and chief operating officer. He replaces Peter Teets, who retired during the restructuring. Hughes is a former General Motors executive.
With the restructuring and its renewed focus on the government customer, Coutts said he sees growing opportunities. He said Lockheed Martin's systems integration unit should grow at about 5 percent annually.
Its work with the U.S. Postal Service should help the company win business in growing areas such as electronic commerce, especially as it involves distribution and delivery, according to Coutts.
He said there also is a growing trend toward the use of a single systems integrator to coordinate major technology projects, such as the Navy's new aircraft carrier and the Air Force's Integrated Command and Control project.
"You have to be able to take any weapons, any sensors, any kind of hardware product, any kind of computer along with anyone's software plus your own stuff and satisfy very complex requirements," Coutts said. "That is what we do."
Net Earnings$382 million
Net Earnings$1 billion
1150 Gemini Ave., Houston, Texas 77058 ? www.unitedspacealliance.com ? $1,464,996,000
By Calli Schmidt
United Space Alliance has a good thing going in the world of federal government work: an absolute lock on at least $1.5 billion in business this year from NASA.
And while its task on the surface seems manageable enough ? keep NASA space shuttles running safely, cheaply and on time ? it is more complicated than that.
A joint venture between Boeing Co., Seattle, and Lockheed Martin Corp., Bethesda, Md., USA was formed in 1996 after NASA decided to consolidate all operational work related to the space shuttle program.
This year, it expects to begin a three-year, $1.5 billion project to completely upgrade NASA's four shuttles, adding new safety features to double the crafts' reliability during ascent.
The project also calls for improving support operations and ground systems, including facilities and equipment in Houston at the Johnson Space Center and in Florida at the Kennedy Space Center.
"We're helping them fly safe, and we're working to improve the reliability and performance of the fleet itself," said Kathy Taner, vice president and chief information officer at USA headquarters in Houston.
The agreement continues to bring in new contracts under the joint venture umbrella ? including one last fall for the solid rocket boosters' refurbishment ? for a total of $900 million in additional contracts since 1998. USA's initial agreement with NASA was a six-year, $7 billion contract in 1996, with up to two, two-year extensions that would bring the entire package to $12 billion.
"Every year we add a couple new contracts, and that's how we grow," Taner said. USA projects revenue of nearly $1.6 billion this year from NASA, its sole customer. About 9,900 employees from the two companies work for USA.
The consolidation had an unexpected benefit when USA began implementing year 2000 computer fixes, Taner said. In 1996, the company had sought complete inventories of all hardware and software in order to get an accurate baseline count as the joint venture between the two companies got under way, she said.
"We had, as a result of it, a complete detail of our infrastructure" and could "verify and then reverify" that the systems were year-2000 compliant, Taner said.
Consequently, USA was able to make all appropriate fixes to the shuttle and ground operations well in advance of the new year, she said.
USA's Florida business includes everything related to the orbiters' ground operations: vehicle modification; testing, checkout and launch operations; American and trans-Atlantic emergency landing site support; manufacture, repair and procurement of shuttle hardware and ground support equipment; and ocean retrieval of the solid rocket boosters that launch the shuttle into the atmosphere.
The operations in Houston oversee astronaut and flight controller training and mission planning, flight design and analysis, including the shuttle flight simulator, flight software development, flight crew equipment development, manufacture and storage. It also manages the famed Mission Control center that takes charge once the shuttle takes off the ground.
NASA ties 80 percent of USA's revenue directly to safety performance, which is the primary aspect of USA's work, Taner said. The company must meet specific quality and safety standards that coincide with mission and schedule objectives in order to collect its portion of government cost savings built into the contract.
NASA expects to save $400 million over the initial six-year contract duration, but for every additional dollar saved, 35 cents is USA's to keep if it meets performance objectives.
The company hopes its unique experience in space shuttle operations and maintenance will translate into new contracts over the coming years for new or next-generation reusable launch vehicles. In the meantime, Taner sees a number of challenges ahead for USA in order to fulfill its existing NASA contract.
First, she said, is the government's increasing concern about the security of the intricate computer systems that keep its agencies running and the space shuttle in the air. Not only must USA keep the system safe from hackers and errant viruses, but NASA has the added responsibility of looking out for potential saboteurs, just like the military and national security agencies.
Then there is the issue of compliance with congressional mandates regarding the security of electronic exports, a big deal in regard to the International Space Station. The space station is a NASA project that includes collaborating on a number of other countries' space exploration programs, including Russia. Also, information security comes into play "every time we exchange technical information," Taner said.
USA's contract with NASA includes operation and training support for the space station, flight scheduling, logistics and payload analysis and integration.
"There is a strong desire to use the Web for [the exchange of] technological information, but we have to be very careful," Taner said, especially because not all aspects of the information exchange can be directly controlled by NASA.
Because NASA also intends to upgrade its shuttles, there will be a lot of participation with companies across the world. This means that as USA selects contractors for the planned upgrade, it must ensure the appropriate information is protected and that the company adheres to the export regulations.
The problem is not unique to USA or to NASA, Taner said: "When you look at export compliance and the impact of foreign nationals in your country, everybody needs to pay attention."
Because USA uses a mix of NASA and company-owned networks, the alliance must ensure it can keep all information systems fully secure, Taner said. As a result, USA has "a tremendous IT security program."
NASA has used the security program on some other contracts, she said, and USA is pondering expanding its work in that area to other government agencies, including the Department of Defense.
2100 E. Grand Ave., El Segundo, Calif. 90245 ? www.csc.com ? $1,244,867,000
By Jack Weible
Computer Sciences Corp.'s acquisition of Nichols Re-search Corp. and the federal government's shift toward outsourcing should bode well for company business in both the defense and civilian sectors, according to CSC officials.
While CSC's federal business sector did not record any huge box office deals comparable to the multibillion Internal Revenue Service Prime Integration contract in 1998, both its defense and civilian segments posted double-digit revenue increases in 1999.
The civil sector totaled $823 million, up 21 percent for the year, while the defense sector brought in $1.6 billion.
"If you take Nichols out of that, it's about 10 percent [growth in defense revenue]," said Austin Yerks, senior vice president of business development for defense. "With it, we're up by 35 percent."
The acquisition of Nichols, announced in September 1999, brought $455 million annual revenue and 3,000 employees into the CSC stable. More importantly, it brought the federal sector a strong presence in space and missile defense as well as intelligence, and added to its outsourcing capabilities.
While Nichols was "a pretty solid business," its profit margin generally was below its competitors, said Moshe Katri, an analyst at SG Cowen Securities Corp. in New York. "It will be interesting to see if CSC can stimulate that."
CSC, based in El Segundo, Calif., overall is a huge company with fiscal 2000 revenue of almost $9.4 billion, up more than 15 percent from a year ago, and net earnings of $433 million, up almost 22 percent. Its 58,000 employees run the gamut in information technology specialties that key on outsourcing, management consulting and systems integration. About 25 percent of total revenue is government business.
Milton Cooper is president of CSC's federal business based in Bethesda, Md. The unit has about 12,000 people in its defense sector and just over 5,000 in the civil sector.
The IRS contract awarded in 1998 initially was expected to reach $8 billion over 15 years. But by J. Patrick Ways, senior vice president for civilian business development said at this point ? due in part to heavy congressional scrutiny of the IRS project ? he is unsure of the final amount. "We're still talking in the billions," he said.
While no awards of that size came CSC's way last year, there was an assortment of contracts in the $50 million to $70 million category, according to Ways, including a Medicare deal of almost $300 million. What CSC considers important, he noted, is that the civil sector won 91 percent of all dollars on which it bid.
On the defense side, CSC led a team that in December won the Army Wholesale Logistics Modernization Program, or Logmod, a deal worth $680 million over 10 years. It calls for the contractor to provide IT services to re-engineer and modernize the service's wholesale logistics business through best commercial practices ? a talent that CSC officials say their company is adept at providing.
The defense side also captured a $450 million, five-year contract to provide "down range" operations for Patrick Air Force Base near Cape Canaveral, Fla. Under the deal, which will involve about 1,000 personnel, CSC will maintain and operate the computers and camera equipment that supports range operations, Yerks said.
The defense side won 71 percent of all dollars for which it bid in 1999, according to Yerks, who said 50 percent is considered a good success rate. "We view the marketplace as reasonably robust," he said. "There are fewer large opportunities out there, but some good deals still remain."
One of the largest deals up for bidding this year is the Navy/Marine Corps Intranet project that calls for the winner to build and maintain a network that will connect desktop computers at Navy and Marine Corps installations around the continental United States and Hawaii. More than 400,000 seats are affected, and a quartet of industry teams is bidding for the lucrative $10 billion, eight-year assignment.
The CSC-led Flagship Alliance team includes Bell Atlantic Corp., Cisco Systems Inc., Dell Computer Corp. and Microsoft Corp. The other teams bidding are led by Electronic Data Systems Corp., IBM Corp. and General Dynamics Corp.
Another contract expected to be awarded in late September is an estimated $500 million deal to redesign and install a new information technology architecture for the Defense Logistics Agency. CSC has selected SAP enterprise resource planning software for its bid, which was due at DLA May 5, Yerks said.
While federal IT budget growth is projected at 4 percent to 6 percent annually over the next several years, the potential for companies such as CSC to retain double-digit growth is keyed in part on the outsourcing trend by federal agencies, both Yerks and Ways agreed.
The government will have increasing difficulty in keeping its employees, especially IT-related personnel, and has to turn to outsourcing to run its operations, Ways said.
"It's a huge opportunity for us. I don't think there's anything that can stop it from happening," he said.
And CSC's ability to run a vertical operation, combined with what Ways called "the depth and breadth of our commercial success," should bode well for it in obtaining future government contracts, he said.
Ways, however, said CSC must work harder if it plans to obtain management consulting dollars, which it is eyeing heavily, against the likes of Andersen Consulting and KPMG Consulting, longtime standard bearers.
"I think we're on a level with them," Ways said. "Do some officials at government agencies think that? The answer is no. Our challenge is to change that."
The company also intends to get its share of other burgeoning areas in government: e-government, information security and knowledge management.
CSC's success is not limited to the federal arena. The company signed in March a six-year, $351 million contract with the New York State Department of Health to develop, among other things, a new information system for data processing.
And, also in March, it delivered the first of 100 new high-speed desktop computers to San Diego County as part of a $644 million outsourcing contract to operate the county's IT infrastructure. CSC heads the Pennant Alliance team that won the award.
Double-digit growth will continue at CSC's federal sector, Ways said. "I think it's a tremendous market."
Net Earnings$433 million
Net Earnings$341 million
7755 E. Marginal Way South, Seattle, Wash. 98108 ? www.boeing.com ? $1,135,537,000
By Calli Schmidt
Beset by a difficult 1998, Boeing Co. promised its shareholders that it would make more money in 1999. The Seattle company delivered on that promise: net income of $2.3 billion, up from $1.1 billion.
The company moved from 463rd place to 128th on the Standard & Poor 500 "return to shareholders," almost meeting the top-quarter goal it had promised shareholders it would achieve within several years. It also reduced its work force 10 percent, from 220,000 in 1998 to less than 200,000 last year.
"Our mission is bigger and broader than ever. It is to push not just the envelope of flight, but the entire envelope of value relating to our customers and shareholders," Philip Condit, chairman and chief executive officer, said in Boeing's 1999 annual report.
The company also promised to open its books, and "invited the world to track our progress," according to the report. However, no Boeing officials were available to be interviewed for a Washington Technology Top 100 profile.
Boeing, which acquired McDonnell-Douglas three years ago, is poised to complete its purchase of Hughes Electronics Corp.'s space and communications business by midyear as it continues to solidify its position as the nation's leading aerospace vehicle, equipment and operations vendor.
Boeing was recently plagued by a 40-day strike of more than 20,000 engineering and technical workers that led to a 10 percent to 15 percent drop in its stock prices. But with the strike over, the firm has rebounded, said analyst Brian Eisenbarth of Collins & Co., Larkspur, Calif.
"The most recent information we have is that they're back on track, that the strike was not a major disruption. They were able to rebound from that better than what people expected them to," Eisenbarth said.
In its annual report, Boeing touted a breakthrough last year in the National Missile Defense program, for which it is lead system integrator in the three-year, $1.5 billion contract to deploy a system to defend the United States from a limited ICBM attack. In October 1999, Boeing destroyed a ballistic missile target in space with a test interceptor missile on its first attempt, the report said.
The company also said it is streamlining and modernizing its manufacturing processes. Boeing's Joint Strike Fighter team used three-dimensional solid modeling, simulation programs and laser-guided machinery to assemble in Palmdale, Calif., the new X-32A from parts manufactured in Seattle, St. Louis and Tulsa, Okla., taking a little over a year and 58 people to do so.
The program is a next-generation fighter still in the concept stage that is targeted for the Air Force, Navy and Marine Corps. Boeing is competing with Lockheed Martin Corp. to win the long-term development and production contracts that could reach upward of $100 billion.
Boeing also is prime contractor to NASA for the design, development and on-orbit performance of the International Space Station, which is scheduled to be deployed by 2002 and house up to seven crew members by 2004. Station assembly will require more than 40 U.S. and Russian launches on Boeing-manufactured Delta rockets, all maintained by employees of United Space Alliance of Houston, the Boeing joint venture with Lockheed Martin Corp., Bethesda, Md., to provide these services.
The company said it will continue taking the lessons learned in the manufacture of its vehicles to provide value-added products for its customers. "We have to do things differently, identifying new opportunities and using our intellectual capital in new and better ways," the report said.
In 1999, Boeing "stopped thinking of ourselves as just an aerospace manufacturer and began to think of ourselves in a much broader way: as a provider of integrated products and services to all of our customers," according to the report.
In just its second full year of operation, the military aerospace support business accounted for 25 percent of the total revenue in the military aircraft and missiles unit, and commercial and military aircraft services accounted for $4.2 billion in 1999 revenue, compared with $3.7 billion in 1998.
"We expect a double-digit annual growth rate in this area to continue over the next decade," the report said.
Boeing compares its new emphasis on providing life-cycle solutions to similar changes made by other companies, such as former hardware giant IBM Corp., which has evolved into a leading systems integrator.
"The opportunities that are opening before us play to two of our core competencies: detailed customer knowledge and large-scale systems integration. Even better, they allow us to leverage a vast store of information about our own products," the report said.
A $100 million airplane can be expected to cost an additional $125 million over its useful life for maintenance, replacement parts, modification, training and other services, and Boeing wants to cut itself a larger chunk of that pie.
"It is our objective to become the premier supplier of aerospace services as well as a world leader in commercial and military airplanes and space and communications hardware," the report said. "When we deliver an airplane, it represents a relationship with our customer that may continue for the next 30 years or more."
In 1999, Boeing opened its fifth modification and upgrade center for military aircraft, this one in Jacksonville, Fla. It joins centers in San Antonio, Shreveport, La., Wichita, Kan., and Mesa, Ariz.
Boeing also is increasing its emphasis on training, especially for managers, sending 2,000 employees last year to its Leadership Center in St. Louis, headquarters of the former McDonnell-Douglas company, to sharpen their skills and to begin to make the center a required stop for all Boeing managers.
The company touts its leaner, meaner manufacturing facilities that require fewer people to perform the same functions and feature an atmosphere that is "strikingly different from the one that existed two or three years ago," the report said.
Net Earnings$1.1 billion
Net Earnings$2.3 billion
141 Spring St., Lexington, Mass. 02173 ? www.raytheon.com ? $1,127,078,000
By Trish Williams
Raytheon Co.'s information technology outlook is better than the company's overall prognosis for 2000, thanks to several recent contract awards and potential for government business from future network-centric warfare and large-scale systems integration projects.
"It's not a business that gets a lot of visibility," said Byron Callan, an analyst with Merrill Lynch in New York. People think more of missiles, aircraft and radar when they hear Raytheon, "but, clearly, they are a substantial player in the IT market," he said.
The Lexington, Mass.-based company, which had 1999 revenue of $19.8 billion, underwent a restructuring in the past year, and a major repositioning is still under way. The company is selling assets and making myriad changes to buttress its image as a global technology leader after an unexpectedly weak financial performance last year. Reported earnings fell nearly two-thirds in 1999, resulting in the company's stock plunging from a high of $76 to as low as $17 a share.
"It will be a year of recovery and a year of rebuilding credibility," Callan said.
But the government information technology area has been a bright spot for Raytheon lately, and one where company officials have predicted rapid growth. On May 3, the company announced it was awarded a $270 million contract change from the Federal Aviation Administration to incorporate modifications to the Standard Terminal Automation Requirement System, a joint procurement for the FAA and the Department of Defense.
Raytheon is under contract to develop and install the system at 173 FAA terminal area control facilities and up to 199 military radar approach control facilities and associated air traffic control towers over the next decade, according to a company statement.
In late April, the company nabbed an information technology services contract valued up to $65 million from NASA's Ames Research Center in Mountain View, Calif. Work under this contract complements support Raytheon now provides to Ames under the Federal Information Processing Services contract.
"Raytheon has a proven track record of developing, deploying and integrating IT solutions for federal customers," said Phil LePore, chief executive of Raytheon Technical Services, which specializes in management, operation and maintenance of facilities, equipment, systems and other services for defense, federal and commercial customers.
A top official with the company's Command, Control, Communication and Information Systems division, based in Marlborough, Mass., told Washington Technology in late January that his unit likely would grow at a faster clip than any other division in 2000. Raytheon officials did not respond to requests for interviews for this article.
Frank Marchilena, president of the command and control unit, said at that time that he was looking to capture new government business from network-centric warfare projects, such as the Air Force's Integrated Space Command and Control contract.
Raytheon failed in its bid for a prime role on that Air Force effort, however. In February, the Air Force narrowed the field of challengers from three to two, dropping the Raytheon-led team from the competition. Lockheed Martin Corp., Bethesda, Md., and TRW Inc., Cleveland, are now slugging it out for the lead role on the project to modernize and consolidate functions at the command and control center for space operations near Colorado Springs, Colo.
A keen competition now under way that could spell big bucks for Raytheon is the Navy/Marine Corps Intranet project. Four companies still are hotly competing for the contract, which is estimated to be worth at least $10 billion.
Raytheon is teamed with Electronic Data Systems Corp., Plano, Texas, on this one. Joining Raytheon as a major subcontractor on the EDS-led team is MCI WorldCom, Clinton, Miss., which would oversee the communications work for the effort. Raytheon would handle the broad security requirements for the project.
Computer Sciences Corp., El Segundo, Calif., General Dynamics Corp., Falls Church, Va., and IBM Corp., Armonk, N.Y., are leading competing teams. The winning contractor will be responsible for secure voice, video and data networking, desktop computers, hardware, software, services and training for more than 400,000 users.
Raytheon also is pursuing the Federal Aviation Administration's Telecommunications Infrastructure contract, a 10-year, $2 billion effort to manage FAA's myriad telecommunications networks. The company is on a team led by Harris Corp. of Melbourne, Fla.
The contract, known as FTI, is expected to be awarded by the end of the year. Also leading teams trying to capture the contract are Lockheed Martin and MCI WorldCom.
As it pursues these new business opportunities, analysts said, company executives must chart a viable course for the defense electronics and system integration company that has worldwide operations serving customers in more than 80 countries.
On April 17, Raytheon announced that it had signed a definitive agreement to sell its engineering and construction unit ? Raytheon Engineers & Constructors International Inc., Cambridge, Mass. ? to Morrison Knudsen Corp. Two days later, the company reported earnings from continuing operations of $80 million for the first quarter, a steep decline from its $240 million in the same quarter one year ago.
First quarter sales from continuing operations were $4.2 billion, a slight drop from last year's $4.3 billion "due to divestitures," the company said.
"On balance, earnings from continuing operations met expectations," Daniel Burnham, Raytheon chairman and chief executive officer, said in the statement announcing the first quarter earnings. "This was an important first step in repositioning the company for 2000 and beyond."
The Raytheon Engineers & Constructors subsidiary pulled in approximately $2.7 billion in 1999 sales. The sale of that unit will leave Raytheon with two core businesses: defense and commercial electronics, and business aviation and special mission aircraft.
In November 1999, the company reorganized its defense and government electronics businesses and made other changes designed to make it a more nimble competitor. Raytheon Systems Co., which was formed in December 1997 after the company's purchase of Hughes Electronic Corp.'s defense business, was phased out and replaced by an electronic systems business unit.
This unit and the company's two IT-related businesses ? Command, Control, Communication and Information Systems, and the Training and Services unit ? now report directly to Burnham.
Net Earnings$404 million
Net Earnings$1.14 billion
32 Avenue of the Americas, New York, N.Y. 10013 ? www.att.com ? $1,087,692,000
Mary Jane McKeever
By Jennifer Freer
Despite losing the highly coveted FTS2001 long-distance contract, AT&T Corp. is striving to maintain its telecom leadership by building on six contract wins in the federal government's multibillion dollar Metropolitan Area Acquisition program.
"Winning the MAAs gives us the opportunity to provide local services," said Mary Jane McKeever, senior vice president for AT&T Government Markets. "It has demonstrated our commitment to the market."
Equally important, the MAAs also may serve as a back door into the federal long-distance business, because after one year, the company may request that it begin offering long-distance services as well.
Thus far, the Basking Ridge, N.J.-based telecom giant has won more than $1 billion in MAA contracts, including the first three MAAs for Chicago, New York and San Francisco in May 1999, totaling $689 million. It also won Buffalo in February for $40 million, Cleveland in March for $150 million, and Indianapolis in April for $240 million.
The MAA program is a set of first-of-their-kind competitive awards for vendors to provide local telecommunications services to federal agencies in 17 metropolitan areas. Winning contractors in the cities will provide circuit-switched voice and data services as well as dedicated transmission.
The telecommunications companies competing for the MAA awards include: Ameritech Corp., AT&T, Bell Atlantic Corp., BellSouth Corp., Pacific Bell, Southwestern Bell, US West Inc. and WinStar Communications Inc.
Awards for Boston, Dallas, Denver, Philadelphia and New Orleans will be decided in July or August. And contracts for Boise, Idaho, and Albuquerque, N.M., will be awarded in September, General Services Administration officials said.
But analysts are uncertain whether AT&T can recover fully from losing the FTS2001 contract. After being the incumbent in the FTS2000 contract, the company lost the $5 billion FTS2001 contract in early 1999 to Sprint Corp. of Westwood, Kan., and MCI WorldCom Inc. of Clinton, Miss.
"AT&T faces some major competition to its space," said Warren Suss of Warren H. Suss and Associates of Jenkintown, Pa., a consulting firm specializing in telecommunications and information technology. "AT&T is doing everything it can to hold their ground after the loss of FTS2001. They've dropped prices to meet the competition and aggressively fought for new business. AT&T's market leadership is at risk, and they are in for the fight of their lives in the federal marketplace."
This assessment was largely echoed by Kevin Plexico, vice president and chief technology officer for Input, a market research firm in Vienna, Va. "They have been successful in MAA awards, and that could offset its market share, but it is likely to slip a little bit," he said.
AT&T dropped into the No. 9 spot on Washington Technology's 2000 Top 100 list, falling from No. 4 in 1999. The company had 148,000 employees in 1999 and more than 80 million customers, to whom it provided long-distance, wireless and local telephone service and Internet access to consumers, business and government customers.
In the public sector, AT&T provides products and services for defense and civilian agencies through contracts with the Defense Department and GSA. Its 1999 revenue was $64.1 billion.
AT&T also is going after the highly competitive Navy/Marine Corps Intranet contract, worth $10 billion, that will provide secure voice, video and data networking, desktop computers, hardware, software, services and training at Navy and Marine Corps facilities. AT&T is part of a team lead by IBM Corp., Armonk, N.Y.
The company also will be fighting for the $1.9 billion Federal Aviation Administration telecom contract to build an integrated telecommunications system. AT&T was pursuing the contract as a prime but joined forces with the team led by Lockheed Martin Corp. of Bethesda, Md.
Another potential opportunity for AT&T is the GSA's Consolidated Telecommunications Services for Domestic Installations for the State Department, which will be recompeted in 2003. AT&T holds the current contract, won in December 1993 and worth $122 million. Under the contract, AT&T provides switched voice and data communications services to State Department facilities in the Washington, D.C., and New York City areas.
If all option years are exercised, AT&T's contract will expire in December 2003. The State Department is starting a new competition for the next contract that is expected to begin at the end of 2002, with an award of the new $125 million contract expected in December 2003.
AT&T also plans to capitalize on market trends, such as information security, e-government and professional service offerings.
McKeever said the purchase of midsized systems integrator GRC International Inc. of Vienna, Va., will help AT&T compete for professional services opportunities.
"GRC was a major acquisition for us," McKeever said. "We have our own professional services team in the government area, but merging with GRC will enable us to increase our scalability and be much more able to respond to customer needs."
Under the $221 million cash deal announced in February, GRC will become part of AT&T Government Markets. That is a unit of AT&T Business Services, which oversees the commercial voice and data services business and accounted for $25 billion of AT&T's total 1999 revenue.
With more than 90 percent of GRC's revenue coming from the Defense Department, AT&T gets a $200-million-a-year integrator with capabilities in systems analysis and design, communications engineering, modeling and simulation, data base planning and design and network services.
"One of the higher growth areas in the federal market is the area of professional services," Plexico said. "If AT&T can leverage its telecom capabilities with GRC's professional services, it can be pretty successful. But anytime you acquire another company, there is a transition period, and how you come out of it can be a good thing or a bad thing."
In fact, AT&T grabbed GRC to bolster its professional services capabilities and pursue more outsourcing, information assurance and systems integration work from the government, McKeever said.
"There is a lot of consolidation going on [in the federal market], and we wanted to remain competitive," she said.
Net Earnings$5.5 billion
Net Earnings$6.4 billion
3190 Fairview Park Drive, Falls Church, Va. 22042 ? www.gd.com ? $912,150,000
By Christy Harris
General Dynamics rocketed to the No. 7 spot on Washington Technology's 2000 Top 100 list, a jump from its station at No. 86 last year, thanks to a boost from the acquisition of three units of GTE Corp.'s Government Systems division. Those purchases have helped to make General Dynamics' Information Systems and Technology group a formidable player in the federal government market.
One of the group's biggest strengths is its ability to apply defense technologies to the commercial and non-defense government arenas, and to apply commercial technologies to the defense sector, said Gordon England, executive vice president for Information Systems and Technology. "We provide the best solutions on each side of the bridge," England said.
The three GTE units, Communication Systems, Worldwide Telecommunication Systems and Electronic Systems, were acquired by the Falls Church, Va.-based General Dynamics in September 1999 for $1.05 billion.
England's group, not even three years old, has been built company by company to enhance the corporation's ability to provide integrated platform solutions and a bigger presence in the telecommunications market, he said. It supports General Dynamics' aerospace, marine systems and combat systems groups, "but also unto itself is a terrific business in terms of growth," England said.
The companies making up the Information Systems and Technology unit were acquired to complement, not compete against, each other. "We built it to fill in the puzzle," he said. "We didn't want an overlap. We wanted [the unit] to operate as a company, not just a collection of companies."
Whether General Dynamics is looking for more acquisitions for its puzzle, England would not say. "We're always looking to enhance our portfolio and our coverage," he said. "As we can strengthen, we will certainly do that."
The companies within Information Systems and Technology offer a wide variety of products and services, from building spacecraft computers and providing fee-for-service satellite operations to providing encryption services for the National Security Agency and wireless networks for commercial applications, such as cellular phone services.
General Dynamics, for example, is one of four companies chasing the $10 billion Navy-Marine Corps Intranet project. The massive five-year project will link more than 400,000 users across the continental United States and Hawaii. The challenge will be replacing dozens of incompatible systems at 300 locations in a cost-effective and secure manner.
The total-service package, expected for award in late June, includes voice, video and data networking, desktop computers, associated hardware and software, support services and training.
England said a long history of being involved closely with the Navy and Marine Corps, specializing in providing secure and cost-effective solutions, gives his company the edge.
"We know the customer environment," he said. "We build the systems for the Navy and the Marines. We operate on about a third of their bases."
Paul Nisbet, an analyst with JSA Research Inc. in Newport, R.I., said winning the Intranet award is a long shot, even though General Dynamics has put together a strong team that includes Sprint Corp., Harris Corp., Unisys Corp., PricewaterhouseCoopers, Compuware and Wang Government Services Inc.
"They're competing with the likes of EDS and Computer Sciences Corp.," Nisbet said. "It's considerably more ambitious than anything they've landed to date."
But Nisbet said England's young group should do quite well as it more fully integrates its units. "They'll become more and more formidable," he said.
The Defense Department selected General Dynamics Communication Systems in January to conduct the Commercial Public Key Infrastructure Security Assessment Pilot, a test to determine whether it is feasible for commercial organizations to provide high-assurance digital certificates to the Pentagon and other government users.
Digital certificates are the unique electronic credentials that verify the identity of a user with a high degree of certainty, necessary for electronic commerce and data exchange. If the Defense Department determines it is feasible, a huge new market would open.
General Dynamics, which also will measure the cost of the model, will issue certificates to users at selected agencies and their contractor partners. Once trained, authenticators will issue smart-card tokens with certificates.
"We're very comfortable with the whole area of security," England said.
General Dynamics' forte is in defense, but it has been working toward growing the commercial side of its business. Worldwide Telecommunication Systems, for example, was selected in March by SpaceData International LLC of McLean, Va., to provide engineering and operations support for the company's SeismicStar program, which will enable marine seismic exploration for the gas and oil industry. Orders placed over the four-year period of the contract could exceed $100 million, according to General Dynamics.
The Information Systems and Technology unit had a tremendous first quarter with a sales increase of 160 percent over a year ago, largely because of the GTE acquisitions. Its performance helped lead the way, along with new acquisition Gulfstream Aerospace Corp., for an overall strong earnings statement. As a whole, General Dynamics' earnings were up 16.7 percent over the same period last year.
The biggest question about General Dynamics' overall financial health is whether sales of Gulfstream jets will slow, Nisbet said. General Dynamics acquired Gulfstream, which is not in the technology unit, in the summer of 1999, about the same time it bought GTE Government Services.
"The biggest difference between what the company is anticipating and what may be reality is the outlook for Gulfstream," Nisbet said. "They are figuring that they will be able to maintain full-rate production, as they are now, for the foreseeable future. It is a high rate. We, among others, are anticipating that after the initial surge of orders, that will be softening a bit."
Net Earnings$880 million
Net Earnings$589 million
1900 Richmond Road, Cleveland, Ohio 44124 ? www.trw.com ? $812,255,000
By Trish Williams
TRW Inc. will continue its quest to become a dominant player in the federal information technology marketplace by expanding its command, control, communications and large-scale systems integration role and pursuing new opportunities in information assurance and outsourcing.
"We had a really good year in 1999 and are continuing to focus ourselves on being a major prime contractor. That really is the major thrust of our strategy in the federal systems integration and IT marketplace," said Chuck Shorter, vice president of business development.
TRW's Systems and Information Technology Group, based in Reston, Va., did "quite well" in the defense arena last year, and executives want to leverage that experience into the commercial and federal IT sectors, Shorter said.
Cleveland-based TRW, which is touting its worldwide commercial and government IT services on large-scale, technically complex projects, had revenue of $17 billion in 1999.
TRW Chief Executive Joseph Gorman told analysts last month he is looking at additional asset sales to reduce the debt the company incurred when it bought British auto parts maker Lucas Varity. At the same time, Gorman said he was excited about developments enabling TRW to commercialize technology it has through partnerships, and hinted about plans in the pipeline to develop this side of the business.
"A lot of people view it as an automotive and aerospace company, but, in reality, they are one of the premier players in the world of IT. That clearly is where their focus is in terms of growth," said Rick Knop, partner at Boles, Knop & Co., Middleburg, Va.
While TRW has brought on a new chief operating officer to "clean up" the automotive side of its business, the company's information technology business is growing, said Tom Meagher, vice president of equity research at BB&T Capital Markets, Vienna, Va. "They still are going to be a long-term player," he said.
For the first quarter of 2000, the information technology group's business grew by 15 percent over the same period a year ago. And company officials are projecting 10 percent to 15 percent growth overall for the group in 2000, Shorter said. The group had 16,000 employees in 50 states and its business spanned 33 countries last year.
Complementing government wins in outsourcing and Defense Department command and control projects were commercial IT contracts from companies such as Wheeling-Pittsburgh Steel Corp., Wheeling, W.Va., and Aerostructures Corp., Nashville, Tenn.
"We are using some of the technologies and knowledge we developed from the federal side to win those contracts," Shorter said.
TRW is not pursuing the Navy/Marine Corps Intranet project, choosing instead to focus on "higher technology, higher value-added bids" such as the Army's Warfighter Information Network Tactical, or WIN-T, program, he said. Valued at $5.2 billion over 15 years, WIN-T is drawing some of the heaviest hitters in the systems integration and communications business.
For TRW, it is a "major bid" in which the company can bring technology it developed for other military projects, Shorter said.
WIN-T will connect various command and control systems that provide data on intelligence, combat, positioning on the battlefield, air defense and logistics.
A request for proposals is planned for release later this year, leading to a contract award in 2001. The Army's Communications and Electronics Command at Fort Monmouth, N.J., is managing the contract.
TRW also is taking aim at the Integrated Space Command and Control contract to modernize the command and control systems at the North American Aerospace Defense Command and the Air Force Space Command in Colorado Springs, Colo. The company is squaring off against a team led by Lockheed Martin Corp., Bethesda, Md., for the contract valued at $1.8 billion over 15 years. Now in the final stage of competition, a contract award is expected this fall.
Said Shorter: "Those two efforts are command, control and communications bids, the large systems integration opportunities. That's our core bread and butter that we really focus on."
Another fruitful area for TRW's information technology group has been contracts keyed to a force battle command system being developed for the Army. The company now is outfitting an Army division under the digitization project that takes information systems and applies them to the battlefield.
TRW also has converted nascent business into more work on several defense and civilian IT efforts, company officials said. For example, a 15-year intercontinental ballistic missile integration contract the company won in 1998 from the Air Force has grown more than a third in size, Shorter said. Known as ICBM Prime, the long-term program includes upgrades that have lifted its value to about $6 billion over the life of the contract, he said.
For this effort, TRW essentially has taken over management of the missile force under a concept known as Total System Performance Responsibility.
In April, the company nabbed "an important contract" for the Air Force's Distributed Mission Training System, a relatively large indefinite delivery, indefinite quantity award, Shorter said. Last year, the service narrowed the competition from one dozen or so bidders to four. TRW was chosen the phase one winner of the contract, which is potentially worth $284 million.
The company also has continued to expand outside the defense arena with contracts among other federal agencies, such as the Census Bureau's Data Capture Services Contract. Awarded in 1998, the Census contract was initially valued at more than $187 million.
Also holding promise are a host of public key infrastructure (PKI) efforts planned by federal agencies in 2000 that fall under the information assurance umbrella. TRW has implemented its own PKI technology and has a major contract for this capability with a commercial customer that Shorter declined to name.
While "there's a lot of buzz" around information assurance today, Knop said, "this is not a new area for TRW." They have been working on security applications for customers for years, principally the Defense Department, and "we see this as a major growth area for TRW."
Net Earnings$469 million
Net Earnings$477 million
10260 Campus Point Drive, San Diego, Calif. 92121 ? www.saic.com ? $796,352,000
By Evamarie Socha
Record earnings and revenue have become a habit for Science Applications International Corp. mThe largest employee-owned research and engineering firm in the country, SAIC announced May 2 that it posted increased revenue and earnings for the 31st consecutive year.
SAIC's net earnings for its fiscal 2000 leaped 311 percent over 1999 to $620 million. Revenue rose 17 percent to $5.5 billion. And company officials said federal government business, which accounts for about 53 percent of SAIC's work, contributed $2.8 billion in revenue.
The successes moved the San Diego-based company to No. 313 on the Fortune 500, and places it No. 9 on the Washington Technology Top 100 list for 2000.
The stellar year was fueled by big contract wins on the federal front and several strong acquisitions. The company now totals more than 39,000 employees at more than 150 locations worldwide.
"When you talk to a competitor, see how many of them have been able to grow their government or their federal business greater than 15 percent a year for the last two years. You won't find very many," said Duane Andrews, corporate executive vice president and director of SAIC. "Our [Department of Defense] business this past year grew 17.8 percent, and our civil agency business grew 24 percent."
Recompetes are a top priority for SAIC, Andrews said. The company on May 1 won a recompete contract for the Omnibus 2000 program administered by the Army Aviation and Missile Command in Huntsville, Ala. The five-year, multiple-award, best value contract is potentially worth $1.25 billion.
"Our first priority has got to be holding on to the business we have, or winning all this new business doesn't help us," he said.
Among other big federal wins SAIC has chalked up, either as a prime contractor or as part of a team:
?The General Services Administration's Millennia contract. SAIC will provide a variety of IT services to several federal agencies. This indefinite-delivery, indefinite-quantity task order has a cap of $25 billion.
?The Air Force Distributed Mission Training Operations and Integration program. SAIC will provide phase 1 support as one of four contractors. At the end of phase 1, one contractor will be selected to execute phase 2, a deal that could be for as long as 15 years for about $500 million.
?The Design and Engineering Support Program for the Ogden Air Logistics Center in Utah. SAIC is part of a team that will provide, under the $450 million deal, engineering and technical services for weapons systems, components and support equipment for the Air Force Materiel Command.
?A GSA blanket purchase agreement for critical infrastructure protection support services to government agencies under Safeguard, the Federal Technology Services Program valued at $250 million.
?A task order for the Navy's Space and Naval Warfare Systems Command's chief engineer's office and program directorates. This $197 million deal will find SAIC providing, among other things, system architecture, engineering and integration and design.
Another bright spot is SAIC's acquisition of Boeing Information Services in July 1999. The second largest acquisition ever for SAIC, the Boeing unit brought with it strength in telecommunications and network management capabilities.
The Boeing buy included a large contract with the Defense Information Systems Agency, so SAIC is now the largest network management company going, Andrews said. "I think this has been very successful. They've been doing very well and actually are ahead of their plan this year, so I'm delighted with the acquisition."
Since SAIC acquired the unit, its revenue is running at an annual rate of about $280 million, Andrews said, with continued growth expected. "Their particular plan is pegged at around 10 percent, but I would not be surprised to see them do better."
Mergers and acquisitions will continue to play a big role at SAIC this year. "With government revenue being relatively flat, there's really only two good ways to be able to expand your government revenue," Andrews said. "That's acquisitions and capturing market share. I think we're doing a little bit of both, but acquisitions will be a part of our formula as we go forward."
"Boeing was a real orphan child, and for a long time, that unit lacked direction," said Thomas Meagher, vice president of equity research at BB&T Capital Markets, Richmond, Va. "SAIC took a look at it and saw its assets."
Meagher said SAIC has turned in a tremendous financial performance. "They're certainly one of the 800-pound gorillas on the block. They're an interesting company from the standpoint of the breadth of what they do as well as other, non-federal activity."
Meagher said he believes SAIC also has picked up on an area that will draw in other companies as well: developing e-business for state and local governments.
SAIC in March landed a three-year contract, with three one-year renewal options, for a full-scale interactive procurement system for state and local government agencies throughout Maryland. Known as eMarylandMarketplace, SAIC had completed a 90-day pilot for this project, and will provide systems integration and consulting services for it.
SAIC has two partners on the project: Early Morning Software and International Technologies Inc., both of Maryland.
SAIC also is part of a consortium, led by Computer Sciences Corp., called the Pennant Alliance, that in October 1999 won a deal to provide information and telecommunication services to San Diego County. Andrews said SAIC will continue down the state and local path, looking next to Orange County, Calif., and ahead to the state of Tennessee for projects.
Andrews is proud yet circumspect regarding SAIC's success and future growth.
"We bid a lot, we win a lot, we build a lot of backlog," he said. "I think we have been fortunate enough to have an increasing backlog in specific, single-award contracts, but also in just about one of every major governmentwide contract."
Net Earnings$620 million
Net Earnings$151 million
1840 Century Park East, Los Angeles, Calif. 90067 ? www.northgrum.com ? $620,715,000
By Nick Wakeman
If Northrop Grumman Corp. were a major league hitter, the company would have captured the 1999 batting crown. Logicon, the information technology division of the Los Angeles-based defense contractor, batted 1.000 in 1999 by winning all seven of its major competitions, which had values ranging from $48 million to $2.2 billion.
The division also saw its revenue grow by 32 percent, and it completed an acquisition that brought it important customers among U.S. intelligence agencies.
The success in 1999 pushed Northrop Grumman to the No. 10 spot on Washington Technology's 2000 Top 100 with about $621 million in information technology-related contract obligations.
"The things we put in place in 1998 really paid off in 1999," said Herbert Anderson, president and chief executive of Logicon, which is based in Herndon, Va.
During 1998, Northrop Grumman integrated its Data Systems and Services Division with Logicon, which it purchased in 1997. The integration included the re-engineering of the unit's business development processes, Anderson said.
"We did not have the pipeline [of contracts and bidding opportunities] that we felt we should have," he said. "We didn't feel we were doing a good job in business development."
As the IT division for Northrop Grumman, Logicon pulled in $1.44 billion in 1999 revenue compared with $1.08 billion in 1998. Overall, Northrop Grumman hit $9 billion in 1999 revenue, compared with $8.9 billion for 1998. The company also reported record net income for 1999 of $483 million, or $6.93 per share, up 149 percent, compared with $194 million, or $2.79 per share, for 1998.
Among the 1999 highlights for Logicon was the beginning of work on the five-year, $2.2 billion Joint Base Operations Support Contract that a Logicon-led team won from NASA and the Air Force to provide base operations and launch support functions at the Kennedy Space Center and Patrick Air Force Base in Florida.
Another important win for Logicon was the $67 million contract through the Navy to develop the Joint Mission Planning System, or JMPS, for the Navy, Air Force and the Special Operations Command.
While the dollar value may be small, the contract has significant strategic value, Anderson said. "It is only $67 million, but it is really more important, because JMPS sets us up as the major player in mission planning across the services," he said.
Another key win came in March 1999 when it snagged the $118 million Joint Analytic Support Program to provide analytical and technical support to the Joint Chiefs of Staff.
These wins and others like them gave Logicon a 25 percent internal growth rate, and the acquisition of Data Procurement Corporation Inc. of Laurel, Md., added another 7 percentage points to Logicon's growth rate.
DPC primarily provided IT outsourcing services to Department of Defense and intelligence agencies. The acquisition brought $60 million in annual revenue to Logicon and another 180 employees, bringing Logicon to 12,000 employees overall.
Acquisitions will continue to be a part of Logicon's plans for growth in the future. The company has made one acquisition a year for the past three years.
"When there are opportunities out there that will enhance our business, we will look at them," Anderson said.
During 2000, Logicon will be implementing a Lawson Software enterprise resource planning system for its back-office applications, such as accounting, human resources and payroll. The goal is to save several million dollars of internal expenses, but the ERP system also will make acquisitions easier to integrate, Anderson said.
"So many companies, when they acquire things, struggle for a long, long time trying to get business processes working, let alone going out and getting new business," he said. The ERP system will give Logicon an infrastructure into which it can plug acquisitions.
Anderson is one of the major reasons for Logicon's success in recent years, said Richard Knop, a partner in the investment banking firm of Boles, Knop & Co. of Middleburg, Va. Knop represented DPC in the sale to Logicon. He also represented Inter-National Research Institute, which Logicon bought in 1998.
"He certainly has kept his eye on the ball," Knop said.
Both the DPC and Inter-National Research Institute acquisitions strengthened Logicon's position in the defense and intelligence areas, which will encompass bigger markets in the coming years as agencies in those areas look to outsource more of their information technology needs, Knop said.
The DPC acquisition in particular brought Logicon a presence in the National Security Agency, which it did not have before, he said. The NSA is expected to outsource more of its IT functions, Knop said.
Anderson said his goal is to double Logicon's business by 2006 and diversify its business mix. In 1999, 58.2 percent of Logicon's business was with the Defense Department, 28.8 percent with federal civilian agencies, 10.3 percent with commercial customers, 2.2 percent with state and local governments and 0.4 percent with international governments.
While Anderson said he expects all the sectors to grow, the business mix in 2006 should be 49.1 percent Department of Defense, 26.4 percent federal civilian, 10.9 percent commercial, 10.5 percent state and local and 3.1 percent international governments.
Overall, Anderson said he expects Logicon to grow about 10 percent a year, not counting acquisitions.
To pursue this kind of growth, Logicon is realigning its businesses around its core capabilities, such as information systems, command and control systems, base and range support and training and simulation. At the end of 2000, Logicon will go through a more formal reorganization, Anderson said.
Among the major contracts Logicon is pursuing in 2000 are the $1 billion Nellis Air Force Base, Nev., range operations contract, the $350 million Joint National Test Facility contract for the Ballistic Missile Defense Organization, and the $380 million Operations and Technical Support contract for the National Cancer Institute.
"We expect to be strong in 2000," Anderson said.
Net Earnings$483 million
Net Earnings$194 million
P.O. Box 500, Blue Bell, Pa. 19424 ? www.unisys.com ? $584,461,000
By Calli Schmidt
Unisys Corp.'s successful evolution from a computer hardware company into an information services company has made it one of the top performers in the government technology market.
The company ranked No. 11 in Washington Technology's Top 100 this year, with $584 million in IT contract obligations in 1999. Overall, the Blue Bell, Pa.-based company had $7.5 billion in 1999 revenue.
Unisys "has done a great job over the years evolving from a technical [products] company to a service company," said Nancy Friedman, president of the U.S. Federal Government Group. The company has eased the transition by providing plenty of training, she added, including a $70 million investment since 1999 in what the company calls Unisys University.
Another key to success is the federal group's client satisfaction rating. With an overall rating of 4.35 out of 5, the federal group ranked the highest of any Unisys unit. "In our business, past performance is the lifeline of acquiring new business," she said.
Friedman also touted Unisys' combination of products and partnerships with companies such as Microsoft Corp. of Redmond, Wash. This means that its customers get proven, tested solutions, she said.
Unisys, which has 34,000 employees companywide, has won several significant contracts in the federal, state and local space. These include new Internet-based Medicare claims processing outsourcing deals with Kentucky and Massachusetts totaling $143 million, and a $67 million local area network, management services and seat management from the Social Security Administration.
It also captured two indefinite-delivery, indefinite-quantity IT contracts with the Air Force and the National Institutes of Health.
"They bring a long history of relationships with the federal and state and local governments," said John Jones Jr., an analyst with Salomon Smith Barney of New York, who follows Unisys. "They've been a player for 40 years in that space," which helps enable the company to consistently win large contracts, he said.
The solutions integration market is the fastest growing segment of Unisys' business, Friedman said. She pointed to an Education Department project that showcases a new e-government application.
COOL, or college opportunity online, is a database with searchable information about 9,000 American colleges, larger than any private college-search Web sites. These projects help offset other Unisys efforts that were less than successful in 1999, such as the Internal Revenue Service modernization contract that Unisys works on with prime contractor Computer Sciences Corp., El Segundo, Calif. That project "has gone more slowly than we had hoped," Friedman said.
This year, Unisys is hoping to score big wins with a Maxwell Air Force Base operations support contract, an additional IRS IT contract, and as part of the General Dynamics Corp. team competing to build the Navy/Marine Corps Intranet.
And Unisys hopes its service skills will continue to fill the niche for a federal government that is still downsizing but facing increased citizen demand for services.
"Our major focus is on managed services and seat management to address downsizing and [the accompanying] lack of IT skills" that plague government agencies, she said.
As Unisys continues its private-sector focus on e-commerce, or "e-@ction" as the company calls it, it looks for additional government markets that can take advantage of the solutions it has developed.
"We have a core group within our corporate organization that does nothing but focus on how we [can] Web-enable or offer new e-government solutions to our customers," from projects like COOL to military traffic command, she said.
New Orchard Road, Armonk, N.Y. 10504 ? www.ibm.com ? $550,672,000
By Jack Weible
IBM Corp. officials expect their company to play a major role in aiding federal and state agencies as they speed their somewhat-belated transition to electronic government over the next few years.
The public sector has been lagging the commercial world because of Y2K problems that are now in the rear-view mirror, said Todd Ramsey, general manager of Global Government Industry for the Armonk, N.Y.-based giant. "There has not been quite the same sense of urgency," he said.
But the pace is picking up, and IBM's expertise in several areas of the information technology market ? including data warehousing, information security and knowledge management ? will help the company in securing several e-government opportunities in the near term, said Anne Altman, vice president of federal sales for IBM's Public Sector in Bethesda, Md.
Altman hopes that such work will change the long-held marketplace perception of IBM as primarily a computer hardware and software manufacturer. "I want IBM to be recognized in the e-government sector" with the same impact, she said.
IBM enhanced its leverage in the e-gov sector by forming an alliance in March with i2 Technologies Inc. and Ariba Inc. to provide end-to-end solutions for business-to-business and e-commerce applications, a partnership that extends to e-government, according to Altman. Another deal last October with Siebel Systems Inc. forms a global alliance to deliver CRM software applications to e-business.
Because of its very size ? the company cleared $87 billion in revenue in 1999 and pulled in $7.7 billion in net earnings ? IBM always has played an important role in both the commercial and government arenas. It does not break out revenue in the federal sector, but company officials said IBM revenue exceeded average federal market growth in 1999.
Contracts won by IBM typically run all sizes. The company led a team that secured an $85 million, eight-year pact in August 1999 with the State Department to provide IT products and services to its data processing and communications centers.
IBM is also a member of the Computer Sciences Corp.-led team that captured a $680 million, 10-year contract to re-engineer and modernize the Army's wholesale logistics business. Altman said IBM's share of the deal should total about 25 percent to 30 percent.
The contract, called Logmod for logistics modernization, is designed to adopt best commercial practices into the Army Materiel Command's logistics processes. "It brings our skills, and [enterprise resource planning] and information systems architecture to bear," Altman said.
Another government area IBM is keying on, Altman said, is high-performance computing. The company's SP Product line has proven very competitive, she said, and IBM has computers in place at four Major Shared Resource Centers over the past 12 months at U.S. military installations, along with the Commerce Department's National Center for Atmospheric Research.
Perhaps the most significant contract that IBM ? along with a host of other IT companies ? will be chasing in 2000 is the Navy/Marine Corps Intranet project, valued at up to $10 billion for over 10 years. Under the program, the winning contractor will provide secure voice, video and data networking, desktop computers, hardware, software, services and training for 400,000 users in the two military services. The program now is in the due diligence phase and final proposals are due in late June.
Four teams are chasing the hefty deal. IBM's team includes AT&T Corp., Lucent Technologies Inc., BAE Systems Plc and Lockheed Martin Corp. The other teams are led by Electronic Data Systems Corp., CSC and General Dynamics Corp.
5400 Legacy Drive, Plano, Texas 75024 ? www.eds.com ? $519,335,000
By Trish Williams
Electronic Data Systems Corp., Plano, Texas, is counting on its end-to-end electronic business capabilities to catapult the company past a crowded field of information technology rivals chasing government opportunities in 2000, including the coveted U.S. Navy/Marine Corps Intranet competition.
EDS' government business unit, which accounted for $2.6 billion of the system integrator's almost $19 billion in 1999 overall revenue, is off to an excellent start this year, said Bill Dvoranchik, president of the federal government unit in Herndon, Va. The unit's total contract value in the first quarter of 2000 is "about what we did for all of last year," said Dvoranchik, who added that much of that business includes "extensions and add-ons to existing contracts."
Dvoranchik plans to build on the company's branding as a global e-business leader by increasing business from current customers and adding business from new ones. But a clear near-term goal is landing a prime role on the Navy/Marine Corps Intranet project, which is estimated to be worth more than $10 billion over five years.
"We are as excited about MCI [the Navy/Marine Corps Intranet project] as you can get," said Dvoranchik, noting that the team EDS is fielding has "some major discriminators." Among them is the more than $2.2 billion EDS has under contract today for similar services worldwide, a figure that "dwarfs the competition," he said. Computer Sciences Corp., General Dynamics Corp. and IBM Corp. are leading other teams competing for the intranet project. An award is expected in late June.
EDS has signed up Raytheon Co., Lexington, Mass., and MCI WorldCom, Clinton, Miss., as major subcontractors for the intranet procurement. Raytheon would handle the broad security requirements for the project; MCI WorldCom would oversee the communications work. EDS also has enlisted help from 8(a) and small-business players, which would get at least 35 percent of the total contract value.
Among the other government IT prizes EDS is eyeing are the Defense Logistics Agency's business systems modernization contract, worth an estimated $500 million, and a $2 billion U.S. Customs Service effort to modernize its computers.
Company officials said that the current uptick of interest among government agencies in information assurance and security also offers ample opportunities.
Setting EDS apart from competitors in this area is a comprehensive EDS offering that covers encryption and public key infrastructure (PKI). Also, EDS is one of only two private-sector players with level-three certification from the National Security Agency, company officials said.
William Loomis, managing director of the research group at investment company Legg Mason Wood Walker Inc., Baltimore, said that while EDS is "never the mindshare leader in a particular space," the company has aggressively pursued markets that show strong promise.
"Once an area starts to gain traction, the company will jump in and gain market share and the same thing is likely to happen in e-business," he said. "You can certainly count on them to get aggressively into it ? and offer a wide range of solutions."
The planned expansion of EDS' government IT business is in keeping with a drive kicked off by Chief Executive Richard Brown in early 1999 to re-brand the company as a player in the new digital economy. The aim has been to portray the integrator as a global e-business leader focused on capturing market space using packaged products and proven solutions.
"If you look at what we did in 1999, the first year of new leadership under Brown, it is simple," said Dvoranchik. Brown told executives he wanted them to grow the business and deliver service excellence. And that is the model Dvoranchik said he will continue to follow.
21240 Burbank Blvd., Woodland Hills, Calif. 91367 ? www.littoncorp.com ? $496,506,000
By Nick Wakeman
Wielding three weapons in the federal information technology market, Litton Industries Inc. sees growing opportunities in the coming year to build health care and electronic government systems and provide information assurance services and outsourcing services to the government.
Those weapons are the companies that comprise Litton's Information Systems Group: Litton Data Systems Inc. of Agoura Hills, Calif.; PRC Inc. of McLean, Va.; and TASC Inc. of Chantilly, Va. Combined, they form an IT division that reached the No. 14 spot on Washington Technology's Top 100 with about $497 million in contract obligations.
While the three units operate as independent companies under Litton's umbrella, the company always is looking out for opportunities where the trio can work together, said Edward Rollin, vice president of internal operations for Litton's Information Systems Group.
The unit brought in $1.65 billion in fiscal 1999 for the Woodland Hills, Calif.-based Litton, which had overall revenue of $4.4 billion. "We had a good year," Rollin said.
Thomas Meagher, vice president of equity research at the investment banking firm BB&T Capital Markets of Richmond, Va., said he expects Litton to have above average internal growth of between 4.5 percent and 5 percent this year. "They have a good business there," he said.
Officials at PRC, the biggest piece of Litton's IT group with $895 million in 1999 revenue, point to wins such as the $34 million contract to provide support services to the chief information officer of the Army Simulation, Training and Instrumentation Command as a sign of the division's success.
PRC also was one winner of the $390 million Technical Acquisition Support Services blanket purchase agreement from the Air Force to support space and missile center activities.
Those wins, coupled with established contracts such as the General Services Administration's Seat Management contract and the Air Force Management Information Systems Technical Support II contract, or MIST II, gave PRC a solid base of business in 1999, said Timothy Long, vice president of strategic communications and market development for PRC.
The MIST II contract, which PRC won in 1996, brings in more than $100 million a year, he said. PRC is providing communications, networking and desktop computer support services at 22 Air Force facilities.
PRC is chasing the $10 billion Navy/Marine Corps Intranet project as part of a team lead by IBM Corp. of Armonk, N.Y. The intranet contract is for desktop, help desk and network outsourcing services.
As a prime, PRC is bidding on the Army's $500 million Maxis-Minis and Databases contract to supply hardware and software products and services.
At sister company TASC, officials are shooting for 10 percent annual growth through information assurance and intelligence work and making acquisitions. TASC did about $500 million in 1999 under President Jim Frey.
About half of TASC's revenue comes from intelligence agencies, but the company is looking at new contract vehicles such as the GSA schedule for engineering services, as a way to broaden its business base, Frey said.
TASC also is part of a TRW Inc.-led team that is chasing the $500 million Air Force Distributed Mission Training contract to create a network connecting flight simulators at Air Force facilities around the country.
Frey said the company also is reviewing a variety of new initiatives, such as Web-based applications for the intelligence communities.
Litton officials see growth potential in Data Systems, the oldest and smallest Litton IT company at $150 million a year. Data Systems focuses on command and control systems and ruggedized computer equipment. Data Systems also is looking at commercial applications for its technology, Rollin said.
8283 Greensboro Drive, McLean, Va. 22102 ? www.bah.com ? $464,933,000
By Trish Williams
Booz-Allen & Hamilton Inc. public-sector executives are counting on their technology business unit to sustain double-digit growth in 2000 by seizing new business in three areas: electronic business, information assurance and the revolution of business affairs.
The McLean, Va.-based management and technology consulting firm's Worldwide Technology Business unit, which serves government clients in the United States and abroad, posted slightly more than $1 billion in sales for 1999, company officials said.
The private company had overall revenue of $1.8 billion for its fiscal year ending March 31, company officials said. Booz-Allen's other major business unit, Worldwide Commercial Business, had lower gross revenue in 1999 but higher profit margins.
The 6,500-employee technology business unit, which grew at slightly more than 17 percent in 1999, should increase by 15 percent to 20 percent in 2000, said Alfred Picarelli, vice president of the Information Technology Group, also based in McLean.
The company, which was founded in 1914 and whose bread and butter is business strategy and transformation, is following a plan keyed to "a path of quality growth," said Picarelli. "We don't want to bid on every job just for the sake of growth. We are looking for high-impact assignments that can make a big impact for the client."
One of his group's current major engagements is a restructuring effort at the Internal Revenue Service. "We have a large team at IRS that is helping them review and streamline all their business processes," Picarelli said.
Booz-Allen is using staff from its commercial and technology business divisions for this effort, said Picarelli, who estimated that the work is worth "multiple tens of millions of dollars."
Today, approximately 42 percent of the technology business unit's business is defense-related and 30 percent is civilian, Picarelli said. National security clients represent 20 percent of the unit's business while international government work accounts for 8 percent.
In the past, Booz-Allen has tended to focus on its commercial rather than federal IT efforts but "we've seen trends that show interest from more companies moving into the federal arena," said John Allen, managing director of Quarterdeck Investment Partners Inc., Washington. He cited the recent acquisition by Computer Associates International Inc., Islandia, N.Y., of Dallas-based Sterling Software, and CA's rapid formation of a unit dedicated to the federal IT sector.
But aggressive players in the federal IT market such as Anteon Corp., Fairfax, Va., and Veridian Inc., Alexandria, Va., that have shot from zero to a half billion or more in annual revenue in the past several years, could spell stiffer competition, he said. Booz-Allen "is a great company, great reputation but to the degree that they want to keep pace with some of their peers, they'll face a few hurdles trying to do it on an organic basis."
In 2000, Picarelli plans to grab new business in the e-government arena, a category that encompasses e-commerce and paperless office management as well as e-democracy. In addition, his unit will seek more information assurance work, a place where "we have a brand name and a good track record."
The protection of networks and data represents a significant growth area and is a vital technology that can be applied for the company's clients, he said. Another area the company is targeting for growth is the revolution in business affairs. Today, this change applies only to the U.S. Department of Defense but civilian agencies may ultimately embrace it as well, according to Picarelli. This area covers logistics, privatization and manpower, and marks an attempt by the Pentagon to bring best commercial practices into the military.
One Dell Way, Round Rock, Texas 78682 ? www.dell.com ? $396,395,000
By Christy Harris
Dell Computer Corp., long a stalwart contender in hardware sales, is looking to dominate the vast e-government and security markets.
"E-government is the major trend we see shaping the market," said Thomas Buchsbaum, vice president and general manager of Dell Federal. "The public demand for it is tremendous, while actual delivery lags far behind."
Dell, based in Round Rock, Texas, is a young company, formed only in 1984. But its growth has been dramatic. It now employs more than 36,500 employees around the globe, and the company's 1999 revenue was $25.3 billion with net earnings of $1.67 billion, compared with 1998 revenue of $18.2 billion and earnings of $1.5 billion.
The transition to e-government is creating demand for Dell's Internet infrastructure products and services, such as servers, Internet appliances, Web hosting and e-consulting services, said Buchsbaum, who took over the federal unit in February 1999.
In February, Dell launched a special e-government page on its Web site (www.dell.com/eGov) to help federal, state and local governments deliver services and information to the public online. The site showcases solutions, case studies, news, events and e-purchasing. So far, examples of successes are all from state and local government.
Dell also sponsors a new Webzine and quarterly magazine, eGov, which debuted in March.
"The enemy of e-government is the privacy-security issue." Buchsbaum said. "Security fears are responsible for slowing government's transition to the Web."
At the same time, security concerns are spurring customer demand for everything from locks, firewall products, smart cards, biometric devices and [public key infrastructure] technology to network security and auditing services, Buchsbaum said.
In addition to Dell's offerings to secure the government's IT infrastructure, the company's Web site includes a page (www.dell.com/security) with links to white papers explaining various security solutions. Dell also provides customized security recommendations.
"The Internet has also spawned rapid growth in our enterprise market, especially in the areas of Unix to NT migration and [enterprise resource planning] implementation," Buchsbaum said. "[The] open operating system ? Linux ? is also altering market dynamics. Those new dynamics have made storage the fastest growing of Dell's enterprise segments."
Buchsbaum said company policy prevents him from sharing segment-specific information, but Dell is the market leader in computer sales in the General Services Administration schedule.
Buchsbaum counted among his wins last year selling 44,000 units to the Navy's Pacific Fleet; capturing blanket purchase agreements with the Marine Corps and the Census Bureau; and renewing the Air Force blanket purchase agreement contract.
Dell was one of three companies selected for the Air Force contract, which allows the service's procurement officials to access Dell's special online site to configure, price and purchase systems and peripherals. Users also can access support services.
"It was a pretty good year," Buchsbaum said. As for the year ahead, he wouldn't discuss any deals Dell is pursuing.
Dell also secured some smaller, high-profile contracts in July with the U.S. Naval Academy and U.S. Air Force Academy to provide desktop computers to their incoming cadets, midshipmen and faculty.
Over the summer, the company started offering bundled, discounted hardware-software-service packages to federal customers under the name CareFree Services. The packages, available through the GSA schedule, are intended to reduce procurement paperwork.
Dell saw a spike in business in the pre-year 2000 period at the end of 1999, but soft demand at the beginning of 2000. Many government customers had little to spend in the early part of 2000 because they spent so much money preparing for it, Buchsbaum said.
3901 Stonecroft Blvd., Chantilly, Va. 20151 ? www.gtsi.com ? $313,620,000
By Calli Schmidt
Armed with a fistful of new contracts, Government Technology Services Inc. is aiming to repeat successes that turned around the company's profit outlook during the past two years.
"We intend to continue to be the leading business-to-government supplier in the marketplace" and to continue the string of recent annual profits, said Chairman and Chief Executive Dendy Young. He would, in fact, like to see the company's growth rate reach 10 percent.
Although Chantilly, Va.-based GTSI is the largest reseller of computer products and services to the federal government, the reselling business has a notoriously slim profit margin. After suffering a run of annual losses in the mid-1990s, the company posted $2.7 million net earnings in 1999 on revenue of $669 million. 1998's profit was $2.3 million on $606 million of revenue.
Citing $100-million-plus multiple-award contracts from the Army, Air Force and Navy for software, local area and wide area network systems and portable computers, and a $14 million Navy JetForm software blanket purchase agreement, Young described 1999 as "a very positive year."
For the future, GTSI intends to build on its experience, solid focus on the market and good relationships with its vendors, he said. And while he would not discuss specific bids in process, GTSI is "continuing to focus on federal and [Defense Department] customers and making sure that we have the widest range of selection for our customers," Young said. More than 95 percent of GTSI customers are federal government agencies.
Young said much of GTSI's revenue growth will come from increasing government interest in protecting its databases and Web sites from hackers.
"The No. 1 issue is information security," he said. "It's clear that the government is a key target for illegal hacking, so they're in the forefront of this problem."
In addition to security concerns, GTSI customers are also looking to improve relationships with their own customers, and so customer relationship management software looks to be another growth area, Young said.
Not so long ago, federal officials considered customer relationship management to belong in the realm of private industry, Young said. But now there is a growing awareness among GTSI's government customers that they need to pay closer attention to who is using their services and how they are being used.
"There's a number of initiatives to figure out who the customer is," he said, and the company has been able to help its customers based on its own internal experience with CRM solutions.
GTSI customers also are showing increasing interest in SANs, or storage area networks, for data warehousing as well as for customer relationship management, he said. Over the years, agencies have built up huge, legacy databases, Young said, and they are beginning to explore ways to better use and organize the information already collected.
Like employers elsewhere in today's robust economy, the government has staffing problems, particularly in the high-tech arena. So anything a reseller can put together that requires less manpower to operate and maintain gives that company an edge, according to Young.
GTSI, for example, unveiled the latest iteration of its Web site, a cleaner, easier-to-navigate version that incorporates more features for both vendors and customers. The company has had an Internet presence since 1993, Young said. "We were clearly very early adapters."
GTSI tries to "take our vendors' products to the right people in government," Young said. "We want to grow our business by doing more business with existing customers."
P.O. Box 87, Farnborough, Hampshire, GU146YU United Kingdom ? www.baesystems.com ? $307,083,0000
By Evamarie Socha
Only a few months after being created from a merger, BAE Systems Plc has shown itself to be a major competitor in the government systems integration market.
The $20 billion global systems, defense and aerospace company, based in Farnborough in the United Kingdom, was formed Nov. 30, 1999, with the merger of British Aerospace and Marconi Electronic Systems, which at the time was a subsidiary of GEC-Marconi. It now counts more than 100,000 employees in nine countries.
Combining the two entities landed BAE Systems into the 18th spot on Washington Technology's Top 100 list for 2000.
In 1999, BAE Systems North America, Rockville, Md., brought in $2.6 billion, with about 85 percent coming from the U.S. government, according to company officials. About 25 percent of that is IT-related. This group has more than 18,000 employees throughout the Unite States and Canada and focuses on defense electronics, information technology and systems integration.
BAE Systems is not an IT company in the classic sense, according to company officials. "Although we have one business focused primarily on IT and another on systems integration, those two aspects permeate the company," said Robert Stow, vice president for engineering and technology at BAE Systems North America.
There are no singular, large contracts the company seeks to win, either. Rather, BAE often serves as a subcontractor or partner on many contracts "that win serious business for us in several areas," said Stow.
For instance, on the Defense Department's Future Imagery Architecture - a contract Stow considered a big win for the company - BAE Systems will be a subcontractor to Boeing Co. of Seattle. The work involves developing an architecture for processing remote imagery from all kinds of sources worldwide, archiving the data and providing it to users. Awarded in August 1999, it has an ultimate value of $100 million.
"We're a critical element, and what we do is provide key core technologies and expertise that really leverage us," Stow said.
On the acquisitions side, BAE Systems North America announced April 27 that it entered a definitive agreement to acquire Lockheed Martin's Control Systems. The deal for $510 million, which will be funded from existing cash resources, complements BAE Systems' electronic systems and flight controls businesses. The agreement is expected to be completed midyear pending government approval.
Deals such as the imagery work with Boeing and the acquisition of the Lockheed Martin unit play into the growth strategy of BAE Systems, a company official said. Although there are no particular acquisition targets in mind for the future, "we plan to continue to grow in the systems, defense and aerospace sector, and information technology figures heavily in all our plans," the official said.
That plan is a good one, according to Alex Hunter, an equity analyst with Morgan Stanley Dean Witter & Co. of London.
BAE Systems "is a very high-tech business with a lot of proprietary software ... and a lot of value that is echoed elsewhere in the defense industry," he said. "There are only a handful of global companies with this capability."
Stow said BAE Systems believes keeping its federal business successful involves staying close to its federal customers. "We work with the government to understand what the problems and solutions are, and we use our innovation to find solutions that result in systems and products to satisfy those needs," he said. "That is where we see our growth."
2330 Shawnee Mission Parkway, Westwood, Kan. 66205 ? www.sprint.com ? $299,594,000
By Jennifer Freer
Sprint Corp.'s selection as one of two winning contractors in the General Services Administration's $5 billion long-distance telecommunications service program FTS2001, will boost significantly its opportunities for federal business during the coming years.
Despite some delays in transitioning government agencies to the new contract, shared with MCI WorldCom Inc., Sprint is moving forward and looking to grab more of the federal telecom pie, said Tony D'Agata, vice president and general manager of Sprint's Government Systems Division.
The Westwood, Kan.-based telecom giant remained No. 19 on Washington Technology's 2000 Top 100 list, with almost $300 million in federal IT-related business. Overall, Sprint posted $19.9 billion in 1999 revenue and $1.6 billion net earnings.
Sprint could move up the list in the future because its main competitor, AT&T Corp., had the FTS2000 contract and lost out on FTS2001 to Sprint and MCI WorldCom, Clinton, Miss., said Warren Suss of Warren H. Suss and Associates, a consulting firm in Jenkintown, Pa.
Sprint also is going after the highly competitive Navy/Marine Corps Intranet contract, worth $10 billion, that will provide secure voice, video and data networking, desktop computers, hardware, software, services and training for 400,000 desktop users at Navy and Marine Corps facilities. Sprint is on the team led by General Dynamics Corp., Falls Church, Va.
And as with many other telecom companies and systems integrators, Sprint also will be vying for the $1.9 billion Federal Aviation Administration telecom contract to build an integrated telecommunications system. Sprint is part of the team led by Harris Corp., Melbourne, Fla.
In the meantime, Sprint already owns the Telecommunications Relay Service market with contracts in 27 states. TRS is a service managing call centers for the hearing-impaired using trained operators to serve as intermediaries who relay phone conversations back and forth between standard voice telephone users and users of text telephones.
These contracts are estimated to be worth $50 million in each state, but value amounts depend on the volume of calls and specific services offered. The contracts also vary in length ranging from three to five years, according to company officials.
The company also hopes to focus on the growing trend of converged telecom services by launching its Integrated On-Demand Network services, a communications system that combines high-speed Internet service with multiple phone lines, local and long-distance calling.
ION services currently are not offered to government customers, but Sprint hopes to kick off pilot programs in small agencies this fall. Specific agencies and the number of pilots has not been determined yet, according to Sprint. The company hopes to see ION service in full force by next year, D'Agata said.
The biggest issue facing Sprint could be its future as a separate entity. Sprint is in the middle of a merger with MCI WorldCom that was approved by shareholders at both companies April 28. The companies now await Justice Department and Federal Communications Commission approval, perhaps later in the summer. If granted, a merger would take place late this year.
A merger, however, could affect Sprint's FTS business.
"The near-term challenge is the FTS2001 transition," Suss said. "The long-term challenge is what will happen once Sprint merges with MCI. They are dealing with a merger of two competitors on the FTS2001 contract. So once the merger is complete, what will the government do?"
1095 Avenue of the Americas, New York, N.Y. 10036 ? www.bellatlantic.com ? $280,174,000
By Jennifer Freer
Strategic wins this year in the federal telecom arena are giving Bell Atlantic Corp. a chance to show off its capabilities and compete aggressively for additional contracts, said a top company official.
Among the key government awards for Bell Atlantic Federal, the division carrying out this work, were the $40 million Buffalo Metropolitan Area Acquisition contract and the General Services Administration's Washington Interagency Telecommunications System contract, known as WITS2001, worth $1.4 billion over the next eight years.
"WITS will give us an opportunity to demonstrate our capabilities in voice, data, Internet and video services," said Barbara Connor, president of Bell Atlantic Federal. The contract calls for the company to provide those kind of telecommunications services to federal agencies in the Washington metropolitan area.
"We believe that because the contract is so comprehensive, because the pricing is so competitive, and because the GSA is anxious to market it, it has the capability to become the vehicle of choice," Connor said.
Overall, Bell Atlantic Federal is aiming to hit revenue of $625 million this year, compared with $600 million last year, said Connor. The company moved up five spots this year to No. 20 in Washington Technology's Top 100 list. Bell Atlantic's total revenue in 1999 was $33.2 billion.
Although Bell Atlantic Federal was selected for the WITS2001 contract in January, the company still is awaiting a final go-ahead; its only competitor, WinStar Communications Inc. of New York, filed a protest with the GSA shortly after the award was announced.
"Our main focus is getting the WITS protest resolved and allowing the transitions take place," Connor said. "I see tremendous opportunity with WITS."
The protest is being investigated by the General Accounting Office. The GAO has 100 days to review and file a report with the GSA, which either accepts or rejects GAO's findings. A report and decision are expected this month, sources said.
The Buffalo Metropolitan Area Acquisition contract, awarded Feb. 24, also was important for the company. The government has awarded MAA contracts for 10 sites to obtain local circuit-switched voice and data services as well as dedicated transmission to federal agencies in those cities.
"The Buffalo MAA award is a very strategic win for us," said Connor. "We lost the MAA in New York, and in order to play in the MAA game, you've got to get one."
Among other deals Bell Atlantic Federal plans to go after is the $10 billion Navy/Marine Corps Intranet contract. It will compete on a team led by Computer Sciences Corp., El Segundo, Calif. The award is expected by the end of June.
The Navy/Marine Corps winning team will be responsible for secure voice, video and data networking, desktop computers, hardware, software, services and training for more than 400,000 seats, or computer users, at Navy and Marine Corps facilities around the continental United States and Hawaii.
Bell Atlantic also is bidding with Harris Corp. of Melbourne, Fla., for the $1.9 billion Federal Aviation Administration telecom contract to build an integrated telecommunications system. It should be decided in October.
Bell Atlantic Federal also plans to bolster its presence in the federal market with the merger of GTE Corp., slated to close in late June, despite the fact that GTE sold off its government systems division to General Dynamics Corp. in September 1999.
"There are no acquisitions on our radar screen, but I do see enlarging our federal space through the merger with GTE," Connor said. "Even though a lot of GTE's federal qualities were sold off to General Dynamics, they still have a substantial government business nationwide, and there are some very attractive opportunities for us."21Affiliated Computer Services
2828 N. Haskell Ave.
Dallas, Texas 75204
Total Contracts: $252,166,000
22Federal Data Corp.
4800 Hampden Lane
Bethesda, Md. 20814
Total Contracts: $249,534,000
1303 E. Algonquin Road
Schaumburg, Ill. 60196
Total Contracts: $242,086,000
2000 Edmund Halley Drive
Reston, Va. 20191
Total Contracts: $225,643,000
Includes GTE acquisition
Donauweg 10, Postbox 652, 1000 AR
Amsterdam, The Netherlands
Total Contracts: $212,344,000
Includes Wang acquisition
26Compaq Computer Corp.
20555 State Highway 249
Houston, Texas 77070
Total Contracts: $205,072,000
1025 W. NASA Blvd.
Melbourne, Fla. 32919
Total Contracts: $191,098,000
28SRA International Inc.
4350 Fair Lakes Court
Fairfax, Va. 22033
Total Contracts: $182,329,000
3211 Jermantown Road, Suite 700
Fairfax, Va. 22030
Total Contracts: $176,374,000
Includes Analysis and Technology Inc. acquisition
30CACI International Inc.
1100 N. Glebe Road
Arlington, Va. 22201
Total Contracts: $171,453,000
31Lucent Technologies Inc.
600 Mountain Ave.
Murray Hill, N.J. 07974
Total Contracts: $168,941,000
101 Columbia Road
Morristown, N.J. 07962
Total Contracts: $156,702,000
Includes AlliedSignal acquisition
345 Park Ave.
New York, N.Y. 10154
Total Contracts: $153,460,000
12015 Lee Jackson Highway
Fairfax, Va. 22033
Total Contracts: $151,844,000
2551 Riva Road
Annapolis, Md. 21401
Total Contracts: $148,131,000
3877 Fairfax Ridge Road
Fairfax, Va. 22030
Total Contracts: $145,123,000
37Micron Electronics Inc.
900 E. Karcher Road
Nampa, Idaho 83687
Total Contracts: $144,846,000
Includes Inacom acquisition
38Jacobs Engineering Group Inc.
1111 S. Arroyo Parkway
Pasadena, Calif. 91105
Total Contracts: $142,034,000
4545 Towne Centre Court
San Diego, Calif. 92121
Total Contracts: $137,698,000
7500 Greenway Center Drive
Greenbelt, Md. 20770
Total Contracts: $137,101,00041World Wide Technology Inc.
127 Weldon Parkway
St. Louis, Mo. 63043
Total Contracts: $128,111,000
42Intellisys Technology Corp.
11781 Lee Jackson Highway
Fairfax, Va. 22033
Total Contracts: $126,433,000
500 Oracle Parkway
Redwood Shores, Calif. 94065
Total Contracts: $118,125,000
44McBride & Associates Inc.
5555 McLeod Road, NE
Albuquerque, N.M. 87109
Total Contracts: $114,658,000
3040 Williams Drive, Suite 200
Fairfax, Va. 22031
Total Contracts: $114,296,000
500 Clinton Center Drive
Clinton, Miss. 39056
Total Contracts: $113,884,000
4 W. Red Oak Lane
White Plains, N.Y. 10604
Total Contracts: $110,842,000
1301 Avenue of the Americas
New York, N.Y. 10019
Total Contracts: $109,069,000
49Battelle Memorial Institute
505 King Ave.
Columbus, Ohio 43201
Total Contracts: $102,736,000
50American Management Systems Inc.
4050 Legato Road
Fairfax, Va. 22033
Total Contracts: $100,895,000
19886 Ashburn Road
Ashburn, Va. 20147
Total Contracts: $99,729,000
9333 Balboa Ave.
San Diego, Calif. 92123
Total Contracts: $91,333,000
53Sun Microsystems Inc.
901 San Antonio Road
Palo Alto, Calif. 94303
Total Contracts: $83,232,000
Huntsville, Ala. 35894
Total Contracts: $82,751,000
100 S. Wacker Drive, Suite 1059
Chicago, Ill. 60606
Total Contracts: $77,782,000
56Computer Associates International
1 Computer Associates Plaza
Islandia, N.Y. 11788
Total Contracts: $75,704,000
57Milcom Systems Corp.
532 Viking Drive
Virginia Beach, Va. 23452
Total Contracts: $75,466,000
57Milcom Systems Corp.
532 Viking Drive
Virginia Beach, Va. 23452
Total Contracts: $75,466,000
58Comteq Federal Inc.
7503 Standish Place
Rockville, Md. 20855
Total Contracts: $75,068,000
59Soza & Company Ltd.
8550 Arlington Blvd.
Fairfax, Va. 22031
Total Contracts: $73,788,000
60National Computer Systems Inc.
11000 Prairie Lakes Drive
Eden Prairie, Minn. 55344
Total Contracts: $71,606,00061Veridian Corp.
2001 N. Beauregard St., Suite 1200
Alexandia, Va. 22311
Total Contracts: $71,406,000
62Federal Technology Solutions
2235C Tackett's Mill Drive
Lake Ridge, Va. 22192
Total Contracts: $70,851,000
63Intelligent Decisions Inc.
4080 Walney Road
Chantilly, Va. 20151
Total Contracts: $69,550,000
64Eagan McAllister Associates
47332 Eagan McAllister Lane
Lexington Park, Md. 20653
Total Contracts: $69,035,000
65Sterling Software Inc.
300 Crescent Court, Suite 1200
Dallas, Texas 75201
Total Contracts: $68,166,000
6560 Rock Spring Drive
Bethesda, Md. 20817
Total Contracts: $66,082,000
67Government Micro Resources
7203 Gateway Court
Manassas, Va. 22110
Total Contracts: $65,322,000
68Rockwell International Corp.
777 E. Wisconsin Ave., Suite 1400
Milwaukee, Wis. 53202
Total Contracts: $64,665,000
815 E. Gate Drive
Mount Laurel, N.J. 08054
Total Contracts: $61,820,000
70Dynamics Research Corp.
60 Frontage Road
Andover, Mass. 01810
Total Contracts: $61,263,000
71Aspen Systems Corp.
2277 Research Blvd.
Rockville, Md. 20850
Total Contracts: $58,746,000
72NCI Information Systems
8260 Greensboro Drive, Suite 400
McLean, Va. 22102
Total Contracts: $58,655,000
73General Electric Co.
3135 Easton Turnpike
Fairfield, Conn. 06431
Total Contracts: $56,954,000
74Datatrac Information Services Inc.
9400 N. Central Expressway
Dallas, Texas 75231
Total Contracts: $56,920,000
5050 Powder Mill Road
Beltsville, Md. 20705
Total Contracts: $56,734,000
76Newport News Shipbuilding Inc.
4101 Washington Ave.
Newport News, Va. 23607
Total Contracts: $53,885,000
77Research Triangle Institute
3040 Cornwallis Road
Research Triangle Park, N.C. 27709
Total Contracts: $52,781,000
BT Centre, 81 Newgate St.
London EC1A7AJ, United Kingdom
Total Contracts: $51,151,000
79Universal Systems Inc.
14585 Avion Parkway
Chantilly, Va. 20151
Total Contracts: $49,891,000
D-80333 Munich, Germany
Total Contracts: $49,777,00081L3 Communications Corp.
600 Third Ave.
New York, N.Y. 10016
Total Contracts: $49,514,000
1255 Corporate Drive
Irving, Texas 75038
Total Contracts: $48,793,000
83Silicon Graphics Inc.
2011 N. Shoreline Blvd.
Mountain View, Calif. 94039
Total Contracts: $48,791,000
8000 Westpark Drive, Suite 400
McLean, Va. 22101
Total Contracts: $48,770,000
1650 Research Blvd.
Rockville, Md. 20850
Total Contracts: $47,607,000
5100-J Philadelphia Way
Lanham, Md. 20706
Total Contracts: $47,563,000
6862 Elm St.
McLean, Va. 22101
Total Contracts: $47,317,000
1700 S. Patterson Blvd.
Dayton, Ohio 45479
Total Contracts: $47,187,000
89Kajax Engineering Inc.
1300 N. 17th St., Suite 1300
Arlington, Va. 22209
Total Contracts: $46,263,000
23 Fourth Ave. NW Park
Burlington, Mass. 01803
Total Contracts: $45,880,000
7799 Leesburg Pike, Suite 700 N.
Falls Church, Va. 22043
Total Contracts: $45,180,000
92Resource Consultants Inc.
1960 Gallows Road
Vienna, Va. 22182
Total Contracts: $43,679,000
7733 Forsyth Blvd., Suite 1500
St. Louis, Mo. 63105
Total Contracts: $40,899,000
22 Bailiwick Office Campus
Doylestown, Pa. 18901
Total Contracts: $40,797,000
95Calibre Systems Inc.
5111 Leesburg Pike, Suite 514
Falls Church, Va. 22041
Total Contracts: $40,600,000
96Network Equipment Technologies Inc.
6500 Paseo Padre Parkway
Fremont, Calif. 94555
Total Contracts: $40,212,000
97Southwest Research Institute
6220 Culebra Road
San Antonio, Texas 78228
Total Contracts: $40,089,000
98GRC International Inc.
1900 Gallows Road
Vienna, Va. 22182
Total Contracts: $39,233,000
1030 Titan Court
Fort Walton Beach, Fla. 32547
Total Contracts: $39,140,000
100Force 3 Inc.
2147 Priest Bridge Drive
Crofton, Md. 21114
Total Contracts: $38,697,000