Companies 11-20

11. Electronic Data Systems Corp.<@VM>12. WorldCom Inc.<@VM>13. Dell Computer Corp.<@VM>14. Titan Corp.<@VM>15. Affiliated Computer Services Inc.<@VM>16. GTSI Corp.<@VM>17. Anteon Corp.<@VM>18. CACI International Corp.<@VM>19. AT&T Corp.<@VM>20. Motorola Inc.

Al Edmonds

It seems like ages ago that Electronic Data Systems Corp. was offering to do everything from herding cats to building airplanes in flight. But after the Sept. 11 terrorist attacks, the Plano, Texas-based company adopted a more serious tone, turning its attention to support of "a new breed of warfighter."

"We are working to support what we think of as first respondents: police, firefighters, the National Guard," said Al Edmonds, president of EDS' U.S. Government Solutions in Herndon, Va. "And, of course, those who are concerned with homeland defense at Immigration and Naturalization, Treasury, U.S. Customs, the Department of Transportation and the Department of Defense."

According to Edmonds, the new emphasis on homeland defense hasn't generated as many new contracts for the company as it has new work in existing contracts.

"New task orders have generated revenue in the tens of millions of dollars ? not really significant given our annual revenues, but we see potential growth going forward," he said.

Last year, EDS' revenue was about $21.5 billion, with global government work accounting for a 22 percent slice of the market, "larger than ever before," Edmonds said.

EDS' success is evidenced by its ranking at No. 11 in Washington Technology's Top 100, with information technology prime contract obligations of $509 million in 2001.

The big-ticket contracts were signed before Sept. 11, including the $6.9 billion Navy-Marine Corps Intranet project and shared participation in a $2 billion Defense Information Systems Agency contract award covering modernization of the Defense Finance Agency.

The new attention to homeland defense has slowed some modernization projects but added security-related work. This, in turn, has enabled EDS to leverage experience with technologies such as smart-card-based security.

Several new contracts have EDS providing smart-card access control and identification systems, originally developed for Israel's Ben Gurion Airport, at the departments of Defense and Transportation and the U.S. Customs Service.

Additionally, EDS' red-light photo enforcement systems, deployed in several cities including New York, are finding increased use in surveillance roles at airports and in other venues. Red-light systems use imaging and sensor technology to capture pictures of motor vehicles as they run red lights. The images are then digitized and stored with identifying information in a table-driven database.


EDS
Prime IT contracting revenue: $509,400,000

Based: Plano, Texas

Chairman and CEO: Dick Brown

Employees: 140,000

2001 revenue: $21.5 billion

2001 net earnings: $1.4 billion

2000 revenue: $19.2 billion

2000 net earnings: $1.1 billion

www.eds.com


Depending on requirements, EDS' citation management software can be used to generate citations, track related correspondence, schedule court dockets, provide cashiering and electronic funds transfer services, record payments and generate program reports. This technology is being expanded to deliver additional security-related capabilities.

The company also is able to leverage the experience of skilled employees through a "free agency" program that allows personnel from one contract to move to another with similar technical requirements, Edmonds said.

EDS' government business is divided among defense, civilian and state and local endeavors. In these domains, Edmonds said he is encouraged by the "increasing attention to innovation and the departure from a legacy systems mindset" in new government work orders. "This provides a good opportunity for a company like EDS to provide thought leadership," he said.

Edmonds also said he is pleased that government officials are placing more emphasis on a company's experience and past performance and not just looking at its size.

"They are still fostering [smaller, younger companies] but as part of an integrated team," he said. "That works for us, because we have a mentor-protégé program."

? Jon William Toigo

Diana Gowen

WorldCom Inc. debuts this year in Washington Technology's top 20, with an impressive leap to No. 12 from last year's ranking of No. 28. The government sector, in fact, is a real bright spot for WorldCom, which otherwise has been buffeted by woes afflicting the entire commercial telecommunications sector.

"Any of [the big contracts] that have been up for grabs, we've won," said Diana Gowen, WorldCom's president of civilian and military markets, regarding the company's success last year in the federal arena.

WorldCom is a major subcontractor to Electronic Data Systems Corp., Plano, Texas, on the Navy-Marine Corps Intranet contract. It is also providing solutions to the FBI Trilogy project, and it won the extension of LINCS, the Federal Aviation Administration's Leased Interfacility National air space Communications System contract, which the company originally won in 1992.

WorldCom's successful year also was marked by completion of the transition of federal agencies to FTS2001, the company's long-distance telecommunications contract with the General Services Administration.

The company is in the hunt for the FAA Telecommunications Infrastructure (FTI) contract, a 15-year, $1.9 billion project that is to be awarded in June.

"Before the LINCS five-year extension, all the delays in FTI were certainly disappointing," Gowen said. WorldCom also considers the Army's Enterprise Infrastructure Transformation program and the HUD Information Technology Service as prospects, she said.

The company's most recent big win, the 10-year Defense Research and Engineering Network contract with a $450 million ceiling over its life, was announced April 4 by the Defense Information Systems Agency. However, as of press time, Sprint Communications Corp., Global Crossing Ltd. and AT&T Corp. have filed separate protests over the selection.


WorldCom Inc.
Prime IT contracting revenue: $506,931,000

Based: Clinton, Miss.

President and CEO: John Sidgmore

Employees: 75,000

2001 revenue: $35.2 billion

2001 net earnings: $1.4 billion

2000 revenue: $39.1 billion

2000 net earnings: $4.1 billion

www.worldcom.com



"I think WorldCom has become the team to beat. In a very difficult, turbulent, imploding telecommunications market, they have been more than just survivors, they have managed to maintain" strong market position, said Warren Suss, president of Suss Consulting Inc., a federal markets research and consulting firm in Jenkintown, Pa.

The events of Sept. 11 have not greatly affected WorldCom's approach, Gowen said. "We still have the same products and services; they didn't change. What [changes] is how you package them and what their focus is," she said.

"Security is a much hotter topic [than] it was last summer, but it was still something we were focused on," Gowen said. "We called it 'continuity of business,' that was the target before; but now it's continuity of government operations."

One direct affect of the attacks was rethinking the physical aspects of information security. "We have major three-letter agency customers who thought it was fine to have everything in a single, central location that's protected," Gowen said. "Now, they're all looking at government continuity differently than in the past."

It's the same way with security, something that people always talked about but didn't walk the walk, Gowen said. Now agency customers are considering solutions WorldCom can provide, such as hardened hosting sites, public key infrastructure projects, firewalls and other security measures.

Suss said WorldCom and other telecom companies must find ways to maintain their prime contractor status on large IT projects. The NMCI program, for example, might be a great contract for WorldCom in terms of business generation, but it also places the company in second position with respect to the customer.

"Unless they're able to step up, they could lose control of the customer interface. [The challenge is] to maintain their identity with the customer, rather than be just a commodity," Suss said.

? Patience Wait

Robert Barr

Dell Computer Corp.'s mission hasn't changed much in the past year. The company, said Robert Barr, director of government marketing, continues to pursue market share "one customer at a time." And it is eager to remind current and potential federal-sector clients that, with expertise in computer-related services and solutions, Dell is far more than a hardware supplier.

"We have a pretty broad suite of products," Barr said. "We have dedicated teams serving the defense and intelligence agencies. We're making sure we have what we call a winning culture, with the best combination of ideas and products directly targeting customer needs."

Dell's ability to deal directly with its customers was crucial after the Sept. 11 terrorist attacks. Because Dell maintains details of every shipped system, as well as a list of installed software, the company was able to quickly respond to the loss of key equipment and software. By mid-October, Dell customers had received an estimated 30,000 replacement servers, desktops, notebooks and applications programs.

Before the terrorist attacks, Dell's government customers were keen on security, interested in protection of servers and passwords and the latest in integrated smart cards, biometrics, firewalls and intrusion detection. Since Sept. 11, federal agencies are beginning to focus on redundant data centers and backup servers and storage devices.

"Now, the discussion is more focused on continuity of operations," Barr said. "Are my architectures and systems highly available? Are my servers redundantly deployed? Is my infrastructure mobile? Is my work force mobile?"

Barr said the war on terrorism is accelerating the movement to e-government, with efficient interagency communications a crucial area of emphasis. With data portability another continuing concern, access to lightweight but powerful notebooks and wireless systems are also high on the federal-deployment agenda.


Dell Computer Corp.
Prime IT contracting revenue: $486,490,000

Based: Round Rock, Texas

Chairman and CEO: Michael Dell

Employees: 34,600

2002 revenue: $31.16 billion*

2002 net earnings: $1.3 billion

2001 revenue: $31.9 billion

2001 net earnings: $2.2 billion

www.dell.com

*Fiscal 2002 ended Feb. 1



Dell's largest federal-sector contract continues to be as a participant in the Navy-Marine Corps Intranet program. NMCI aims to deliver end-to-end information services enterprisewide to the Navy through a common computing and communications environment. The NMCI program will ultimately offer high-quality, high-capacity voice, video and data to the Navy and Marine Corps.

The NMCI program is valued at more than $4.1 billion through 2005, and with the exercise of an additional three-year option, it could amount to as much as $6.9 billion. Dell is a member of the team led by Plano, Texas-based Electronic Data Systems Corp., which won the contract on Oct. 6, 2000. Dell is supplying the servers, workstations, desktops and notebooks for the more than 350,000 seats and associated networks that will ultimately be part of the program.

Dell's products also will comprise the network infrastructure for eight Navy Operations Centers throughout the United States. Over the next five years, Dell will supply desktops, notebooks, thin clients and servers for up to 66 server farms.

Dell gained almost three points of worldwide market share in servers from the year-ago quarter, and more than five in the United States. The company exceeded overall industry growth rates in markets such as China, Germany and Japan.

The company expects to outperform the industry again in the first quarter of fiscal 2003. A seasonal drop in purchases of home computers, combined with softness in demand by businesses, suggest a 10-percent sequential decline in industry shipments. Dell believes its first quarter unit volumes and revenue will be down three to five percent, producing per-share earnings of 16 cents.

? James Schultz

Gene Ray

Titan Corp.'s aggressive growth in government revenue continued in 2001 through its proven formula of consistent contract wins and smart acquisitions. Founded in 1981, Titan touts itself as a company that builds and launches technology-based businesses primarily from government-developed technologies.

"Titan's core capabilities are what we started in 21 years ago: command, control, communications and intelligence, surveillance and reconnaissance. We work on everything from design to integration to products," said Gene Ray, Titan's chairman, president and chief executive officer.

Titan landed at No. 14 on Washington Technology's Top 100 this year with about $466.7 million in prime IT contracting obligations. Overall, the company earned more than $1.1 billion in revenue in 2001. Of that, $919 million came from its Titan Systems division, which is mostly comprised of its defense and IT work.

"Titan has established itself as a major player in both defense and in the government IT services sector, both through internal growth as well as through acquisitions," said Tom Meagher, vice president of equity research at BB&T Capital Markets of Richmond, Va.

Titan subsidiary Titan Systems focuses most on information technology and communications solutions for government agencies. In September 2001, Titan Systems was awarded an indefinite delivery, indefinite quantity blanket purchase agreement by the Army Communications and Electronics Command Acquisition Center to provide software acquisition management services and business process improvement consulting, valued at up to $277 million.

In June 2001, Titan Systems was awarded a contract worth up to $58 million to produce up to 83 antenna subsystems for the Army. In May 2001, Titan Systems won two engineering and technical support contracts from the Naval Undersea Warfare Center Division and the Fleet Industrial Supply Center Detachment, with a combined potential value of $61 million.


Titan Corp.
Prime IT contracting revenue: $466,708,000

Based: San Diego

Chairman and CEO: Gene Ray

Employees: 11,000

2001 revenue: $1.1 billion

2001 net loss: $98.6 million

2000 revenue: $1 billion

2000 net loss: $18.7 million

www.titan.com


In April 2001, the subsidiary won a Navy contract worth up to $127 million to support satellite communications systems improvements.

And that's just a few of the wins.

In addition to its defense work, which makes up the bulk of its government income, Titan has successfully expanded into state and civilian agencies. In August, Titan Systems was awarded a contract by Massachusetts to develop a portal for integrated online government services, and in October, the U.S. Postal Service purchased eight of the electron beam systems made by Titan's SureBeam Corp. subsidiary to sanitize mail from possible anthrax contamination, awarding the company $40 million.

Of course, Titan would not be Titan without acquisitions. In September, the company purchased government-focused IT solutions and services company BTG Inc. for approximately $114.9 million in Titan common stock and $27 million in cash. This gave Titan additional expertise and revenue in information collection and analysis, warfare modeling and simulation, software and systems integration, network design and architecture, and information and network security.

"That really added a lot of mass to the billion-plus they had already been making before," Meagher said.

Despite the sluggish economy, Ray said he is sticking to the company's goal of hitting $1.6 billion in overall revenue for 2002. And as government makes up about 80 percent of Titan's work, Ray is confident it will continue to drive future sales, especially given the influx of homeland security work.

? Joab Jackson

Harvey Braswell

Affiliated Computer Services Inc. is planning to pursue more partnerships with other integrators this year, a shift in strategy that has caught some competitors by surprise, said Harvey Braswell, ACS' group president of government services.

Although Dallas-based ACS hasn't done much partnering in the past, Braswell in recent months has initiated partnering discussions with his counterparts at companies such as Accenture Ltd. of Hamilton, Bermuda, KPMG Consulting Inc. of McLean, Va., and Science Applications International Corp. of San Diego.

"I've personally met with them and talked about ... being able to do business together. I think they were a little surprised in the meetings that I was so open to that," Braswell said, noting ACS lacks the design and consulting strength of some large integrators.

This year, ACS has moved to No. 15 on Washington Technology's Top 100 list from its No. 17 position last year. The company's government systems group has more than 5,600 employees and annual revenue of $835 million in 2001, Braswell said, noting its federal business is split evenly between civilian and defense work.

The mix is likely to change this year, though. While many analysts and industry observers believe it will be easier for ACS to grow the defense side of its business, the reality is it probably will be much easier for the company to grow the civilian side, Braswell said.

The outsourcing opportunities on the civilian side are potentially big deals that can bring a company anywhere from $20 million to $50 million annually, he said. In contrast, the average defense opportunity is less than $15 million.

"There are more deals [on the defense side], but they are not quite as large," Braswell said.


ACS
Prime IT contracting revenue: $450,277,000

Based: Dallas

President and CEO: Jeff Rich

Employees: 31,161

2001 revenue: $2.1 billion

2001 net earnings: $134 million

2000 revenue: $2 billion

2000 net earnings: $109 million

www.asc-inc.com



Among the key deals ACS cut last year: a 10-year, $352 million contract with the Defense Finance and Accounting Service to provide a wide range of pay-related services and support to Department of Defense retirees and annuitants; and four multiple-award contracts worth about $50 million under the Department of Justice's MEGA2 Automated Litigation Support Services.

The company has substantial business with the departments of Education and Labor, Federal Aviation Administration, General Services Administration and NASA, Braswell said.

Braswell said ACS' federal customers want a contractor that can apply commercial best practices to their operations, maintain consistent performance throughout the life of the contract and handle the transition to the new contract without stumbling or faltering.

This year, the ACS government group will be bidding on key contracts at the departments of Housing and Urban Development, Transportation, and the Army Corps of Engineers, Braswell said. The most significant of these is the 10-year, $530 million HUD IT services contract, known as HITS.

The company will face stiff competition from Electronic Data Systems Corp., Plano, Texas; IBM Corp., Armonk, N.Y.; and Lockheed Martin Corp., Bethesda, Md. All four companies are prequalified to bid on the contract, which will be awarded this summer.

Whether ACS wins the contract will tell a lot about how far the company has come in the government business and how successful it has been with business process outsourcing, Braswell said.

"We think we're in a good position to compete on that business right now," he said. "We can learn a lot from that competition, whether we win or lose. It's a good opportunity for us to see where we stand in the marketplace."

? William Welsh

Dendy Young

Capturing the No. 16 spot on Washington Technology's Top 100 list, GTSI Corp. of Chantilly, Va., continues to keep a tight grip on its position as the largest value-added reseller in the federal government market.

The company accumulated about $391.7 million in prime contract obligations during fiscal 2001. Overall, the company had revenue of $783.5 million in 2001, up from $677.8 million.

Building customer relationships has been the key to growing GTSI's business.

"We have to go to the customer, and we have to be where the customer is. Otherwise, we'll be bypassed," said GTSI Chairman and Chief Executive Officer Dendy Young.

But beyond staying close to customers, a reseller has to listen and be ready to change to meet customers' needs, Young said. "There will always be a GTSI, but we'll be different five years from now than we are today," he said.

One of the biggest changes in the marketplace that GTSI now faces is the government's evolving homeland security initiatives.

"The positive change coming out of the [Sept. 11 attacks] is that customers are motivated," he said. "For the first time, there is much less doubt about what the government should be doing, what the agencies should be doing and what their missions are."

The rush of new spending related to homeland security, however, hasn't happened yet, he said: "The IT budgets are increasing, but it hasn't flowed down to the street."

GTSI's customers, which are about 47 percent from the Department of Defense, 46 percent from civilian agencies and 7 percent state and local governments, are much more focused on security and business continuity than they have been in the past, Young said.


GTSI Corp.
Prime IT contracting revenue: $391,715,000

Based: Chantilly, Va.

Chairman and CEO: Dendy Young

Employees: 600

2001 revenue: $783.5. million

2001 net earnings: $4.5 million

2000 revenue: $677.8 million

2000 net earnings: $10.6 million

www.gtsi.com


Many are still assessing what they need to do and their budget and mission priorities, he said.

"The real changes [in IT spending] will be later this year and after the fiscal 2003 budget is approved," he said. "We are seeing a very measured and deliberative approach to spending."

GTSI itself is preparing for homeland security initiatives by adding new technology teams built around specific areas, such as mobile and wireless, he said.

"That is an area that is going to be essential to a [chief information officer] who has to be able to communicate with his people in a crisis," Young said.

Other technology teams have been created around areas such as high-performance computing, advanced networking, Internet portals and high-availability storage solutions.

Besides opportunities coming out of homeland security, Young said he sees government spending centered on intelligence projects, security, information assurance and electronic government. To pursue these opportunities, GTSI is well-positioned with a wide range of contract vehicles, he said.

In the past year, key wins include the recompete of NASA's Scientific Engineering and Workstation III contract, which has a ceiling of $4 billion. Another win was the $600 million Air Force Information Technology II blanket purchase agreement for the purchase of desktop computers, laptops and servers.

And in early April of this year, GTSI was one of the winners of the Veterans Affairs Procurement of Computer Hardware and Software II contract, which is worth $1.3 billion.

Young said there are not many large procurement vehicles on GTSI's wish list for 2002, but the challenge for the company is making efficient use of the contracts it has.

? Nick Wakeman

Joseph Kampf

It was a happy coincidence that Anteon Corp.'s efforts to groom itself for an initial public offering came to a head just as federal commitments to homeland security made government contracting a rare bright spot in an otherwise mixed economy, said Joseph Kampf, president and chief executive officer.

The Fairfax, Va.-based systems integrator's successful IPO follows a banner contract year for the firm, which jumped from 23 last year to 17 this year on Washington Technology's Top 100. It garnered $389,393,000 in prime contracting revenue last year.

Initially offered at $18, Anteon stock quickly rose to $20.05 during its March 12, 2002, Wall Street debut and has generally remained at that level since.

But while the timing was spectacular, Anteon's method for attaining that success was far from splashy.

"I'm from the old school," Kampf said. "You can't make a company succeed by turning on a dime if you've not spent years building the company right," including properly rewarding employees and building a track record of excellent performance.

That solid foundation helped Anteon continue its close relationship with the Navy, which accounts for 35 percent to 40 percent of the company's business through 30 to 40 different Navy departments.

As 2001 began, Anteon was celebrating its biggest single win, a $544 million, 15-year Secretary of the Air Force (Acquisition) Technical and Analytical Support (Saftas) contract to provide comprehensive acquisition management advisory and analytical services.

More typical are contracts in the $15 million neighborhood, Kampf said. The company won 60 percent of the $3 billion in business it bid on in 2001.

Seventy percent of Anteon's $715 million in 2001 revenue came from the Department of Defense, while federal civilian agencies accounted for 25 percent and other business for 5 percent.


Anteon Corp.
Prime IT contracting revenue: $389,393,000

Based: Fairfax, Va.

President and CEO: Joseph Kampf

Employees: 5,400

2001 revenue: $715 million

2001 net earnings: $2 million

2000 revenue: $542.8 million

2000 net loss: $2.9 million

www.anteon.com



Kampf has joined other top IT executives in counseling Congress and government IT leaders on how to best spend homeland security funds. An essential first step, Kampf said, is to assess what's already in place and determine how to expand, link and augment those systems to accommodate new initiatives.

Anteon is well-positioned to win the eventual contracts, which Kampf expects will begin appearing in late 2002 and early 2003.

"We've spent the last five years building mission-critical, enterprise-type IT systems, and a lot of those play directly into the path of where we're going with homeland security," he said.

Examples include the National Emergency Management Information System (NEMIS) Anteon built for the Federal Emergency Management Agency, and LOCE, Linked Operations-Intelligence Centers Europe, which provides the United States, NATO and other allied military forces with near-real-time, correlated situation and order of battle information for threat analysis, target recommendations, indications and warning, and intelligence collection management.

Already, Anteon is doing work within the intelligence community on homeland security initiatives, which Kampf said he was unable to discuss.

Kampf describes Anteon as a "full-service provider" with broad skills in services and engineering solutions. Its strengths include training, weapons modernization and logistics modernization, an area to which Anteon will be adding personnel in 2002, he said.

? Lisa Terry

Jack London

Relying on an aggressive pace of acquisitions and strong internal growth, CACI International Inc. is planning to nearly double its size over the next four years and grow to a billion-dollar powerhouse by 2005.

The 40-year-old company's success in both these areas propelled CACI past its 2001 projected revenue of $550 million to $563.8 million, said Chairman and Chief Executive Officer Jack London.

CACI's success also garnered it a No. 18 ranking on Washington Technology's 2002 Top 100 list, up from 20 last year. London predicted the Arlington, Va., firm will reach $650 million in revenue for fiscal 2002, which ends June 30.

London, a 30-year CACI veteran, said he expects to acquire two or three companies a year, each one bringing with it $50 million to $100 million in additional annual revenue. CACI seeks companies selling to federal agencies in its prime business lines: managed network services, information security and IT for the intelligence community.

CACI also is interested in firms that work in space systems, financial systems and defense engineering and IT, London said.

With internal growth of 10 percent to 15 percent and an acquisition worth $50 million made every other quarter, CACI can exceed $1 billion in annual revenue by 2004, said Bill Loomis, managing director of the Technology Research Group at Legg Mason Wood Walker Inc. in Baltimore.

CACI raised about $171 million in a secondary offering of its stock in March. That money will fund acquisitions and allowed the company to pay down about $70 million in debt, London said.

Like other Top 100 firms, the 5,496 employees at CACI have witnessed dramatic changes in the federal IT marketplace since the terrorist attacks of Sept. 11. But the company's annual strategic plan review last spring positioned CACI to respond rapidly to the post-Sept. 11 need for homeland security solutions.


CACI International Corp.
Prime IT contracting revenue: $379,722,000

Based: Arlington, Va.

Chairman and CEO: John "Jack" London

Employees: 5,496

2001 revenue: $563.8 million

2001 net earnings: $22.3 million

2000 revenue: $490.5 million

2000 net earnings: $38.4 million

www.caci.com



Officials decided to accelerate and enhance CACI's managed network services business, pursue more information security and information assurance business and increase the firm's focus on the intelligence community and space.

"I think we've got a real fine niche right now and a good strategic plan going forward," London said.

While CACI is "too small to bid toe-to-toe against IBM, EDS, CSC and Northrop Grumman on billion-dollar jobs ... London and his team have positioned the company in strong growth areas ? information security and network management, other IT services where money is flowing into," Loomis said. "They have positioned the company very well to get business on smaller contracts."

CACI's customers in homeland security include the Federal Aviation Administration, departments of Justice and State, Customs Service, FBI, Air Force, Army and Navy. Fifty-eight percent of the company's business is with the Department of Defense; 26 percent is with federal civilian agencies.

One of CACI's main lines of business is implementing, designing and managing special purpose networks. Current jobs include a network operations center in Chantilly, Va., that the company manages for the Air Force, and an administrative data network for the FAA that is fully outsourced to CACI. The company also manages classified systems for the departments of State and Defense.

In the past year, CACI won the Department of Justice Mega 2 contract for IT and automated litigation support services. CACI was one of four winners on the five-year, $950 million contract.

? Gail Repsher Emery

Chris Rooney

Despite dropping nine spots to No. 19 on Washington Technology's Top 100 list, AT&T Corp. saw a number of bright spots during 2001. In fact, Chris Rooney, the new president of AT&T Government Solutions, said internal tabulations show his division actually exceeded $800 million (the 2000 total) in contracting revenue in 2001, thanks in part to its work on a large number of classified intelligence and defense contracts.

"There's no question that AT&T is better positioned for growth than ever before," he said.

And for the first time, that growth is coming from both telecommunications and professional services. Clearly, AT&T, being the government's largest single provider of telecommunications and related services, will continue to excel in telecommunication activities.

But 2001 also marked the company's first real strong foray into the professional services realm, thanks to its acquisition in mid-2000 of GRC International Inc., a 40-year-old federal contractor with core capabilities in solutions integration, information technology support, management consulting and scientific engineering.

"Going forward, our greatest challenge is getting government agencies to recognize that we are a full-solutions provider now, offering outsourcing, professional services and IT solutions in addition to having our earliest core competency in telecommunications," Rooney said.

The company plans to tout its professional services successes in an advertising campaign this year, and it recently held a summit with 300 federal customers to highlight its new direction.

"We need to ensure that message is out there broadly and positively, so our customers can take advantage of these new capabilities that we have in our portfolio," Rooney said.

AT&T personnel worked last year, for example, developing, integrating and hosting FirstGov, the new Web portal for the U.S. government, as well as building the National Victim Notification System, which automatically sends out a letter or e-mail to victims of federal crime whenever there's a change in the defendant's status, from arrest and arraignment to parole and release. The notification system was unveiled by Attorney General John Ashcroft in March, around the same time that AT&T won a second contract to develop a new search engine for FirstGov.


AT&T Corp.
Prime IT contracting revenue: $361,855,000

Based: New York

Chairman and CEO: C. Michael Armstrong

Employees: 118,000

2001 revenue: $52.55 billion

2001 net earnings: $9.1 billion

2000 revenue: $55.3 billion

2000 net earnings: $3.18 billion

www.att.com


"This new professional services push has been a real plus for us," Rooney said. "What it does is allow us to go beyond that traditional portfolio and bring a much broader capability to the customer. Adding this has been a wonderful strategic move for AT&T."

Which is not to say that AT&T is foregoing its telecommunications business in any way. Despite losing its appeal to the General Services Administration last spring to recompete the FTS 2001 contract, AT&T won a modification on its Metropolitan Area Acquisition contracts that allows it to provide long-distance services to agencies across the country.

"It gives us an opportunity to serve government clients who are not going through the separate procurement process but rather, quite rightfully, want to rely on the GSA to provide their services," Rooney said. "So it gives them an option."

AT&T will go after myriad new opportunities this year, Rooney said, including, with Lockheed Martin Corp. as its partner, the Federal Aviation Administration's 10-year, $2 billion telecommunications infrastructure program, or FTI, which replaces all of the agency's telecommunications systems with a single, integrated system.

Another contract AT&T thinks it is well-positioned to win is the Immigration and Naturalization Service's Exit-Entry system, a homeland security opportunity that Rooney believes can truly highlight AT&T's new full-service capability.

"We'll be able to provide an IT solution, the telecommunications solution, a logistics-construction solution and the ability to manage the entire contract with a number of supporting contracts," he said. "That's in stark contrast to the past, when we would have only provided the telecommunications piece."

? Heather Hayes

Christopher Galvin

The radio and communications prowess of Motorola Inc., Schaumburg, Ill., has helped the company garner the 20th spot on Washington Technology's Top 100 list.

The company, which recorded about $358 million in prime IT contracting dollars, has built a name for itself building integrated communications systems and embedded electronics products.

In the government market, the company provides solutions such as software-enhanced wireless telephones, networking and Internet-access products, and two-way radio products and systems.

Overall, the company had $30 billion in revenue in 2001, down from $37.6 billion in 2000. The plunge was caused by the bust of the dot-com and commercial telecommunications markets, according to the company.

About 14 percent, or more than $4.3 billion, of Motorola's revenue in 2001 came from its Commercial, Government and Industrial Solutions Sector. Motorola has five other divisions: Personal Communications, Global Telecom Solutions, Semiconductor Products, Broadband Communications and Integrated Electronic Systems.

As with many technology companies, Motorola has set up a homeland security line of business to adapt technologies and pull together capabilities that can be used for homeland defense.

Motorola's homeland security offerings are built around the idea of mobile information and intelligence sharing. The company is offering solutions such as assessment capabilities and tools, interoperable communication and information networks, command and control systems, identification and tracing, and physical security and monitoring.

Motorola has a strong presence in command and control solutions, especially for emergency response operations. The company develops and sells systems that include 911 call processing, computer-aided dispatch and records management.


Motorola
Prime IT contracting revenue: $357,614,000

Based: Schaumburg, Ill.

Chairman and CEO: Christopher Galvin

Employees: 111,000

2001 revenue: $30 billion

2001 net loss: $3.9 billion

2000 revenue: $37.6 billion

2000 net earnings: $1.3 billion

www.motorola.com


For example, Motorola finished a system in 2001 for Guam after that island's emergency communications system was destroyed by Typhoon Paka. The new system is integrated with the Motorola-built emergency communications system at Andersen Air Force Base and the Naval Forces Marianas at Guam. Local and federal agencies can now coordinate responses to emergencies through the new system.

Also playing a part in the growing homeland security area is the company's identification tools, which include fingerprint and mugshot processing. Motorola's Complete ID family of products brings together integrated hardware and software that allows digital image storage, search and retrieval, information sharing among different agencies and jurisdictions and mobile identification units.

Sophisticated radio communications are part of Motorola's heritage and, in keeping with that, the company won the 10-year Army Base Radio System contract to provide wireless communications systems, site preparation, technical support, system design, and maintenance services. The contract is open to all government agencies.

"[The] program offers the most comprehensive contracting vehicle ever issued by the federal government to facilitate implementation of land mobile radio systems," said Bill Turkaly, Motorola vice president and general manager of the U.S. Federal Government Markets Division.

Despite the $7 billion revenue decline in 2001, Motorola is planning to spend $4 billion on research and development of new products and capabilities, company Chairman and Chief Executive Officer Christopher Galvin told an investors' conference March 12.

Some of that research will go to pushing more data capabilities to handheld devices, such as cell phones.

Galvin also said he saw some of the company's public-sector growth coming from organizations upgrading communications systems to wide-area and Internet protocol based technologies. The company also is dedicated to remaining the market leader in two-way radio market for public safety and security.

? Nick Wakeman

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