HHS, Transportation pick Northrop Grumman for e-travel

The Health and Human Services and Transportation departments selected Northrop Grumman Corp.'s online travel management services, officials of the Los Angeles company said today.

The combined contracts are expected to be worth more than $90 million over 10 years, according to Northrop Grumman.

Northrop Grumman, EDS Corp. of Plano, Texas, and CW Government Travel Inc. of San Antonio are competing to sell their E-Travel systems to federal agencies. Northrop Grumman's GovTrip service has been selected by the first three agencies to name an E-Travel provider. The Treasury Department chose GovTrip earlier this month.

By year's end, 24 agencies will select an E-Travel provider.

The General Services Administration manages the governmentwide E-Travel program. GSA officials expect the program to cut federal travel management costs in half over 10 years.

The companies' E-Travel systems will handle all arrangements, including booking air travel, hotel accommodations and rental cars, obtaining supervisor approvals, interfacing with agency accounting systems and reimbursing employee expenses.

The departments of Health and Human Services, Transportation and Treasury account for more than 20 percent of federal agency travel volume, according to Northrop Grumman.

The Health and Human Services Department awarded Northrop Grumman's Reston, Va.-based Mission Systems sector a firm, fixed-price, indefinite-delivery, indefinite-quantity task order on June 16. Department travelers file approximately 235,000 expense reports each year, according to Northrop Grumman.

GovTrip will be implemented departmentwide over the next two years, said Leo Hergenroeder, Northrop Grumman's E-Travel program manager. It will save HHS $35 million over 10 years, according to Northrop Grumman.

The Transportation Department task-order contract awarded its task order June 17. Transportation travelers file about 250,000 travel expense reports each year, according to Northrop Grumman.

Northrop Grumman and Transportation Department officials have completed the interface between GovTrip and the department's Oracle financial system and expect to complete agency-wide GovTrip implementation in 14 months. Transportation estimates GovTrip will save the department $40 million over 10 years, according to Northrop Grumman.

Northrop Grumman's subcontractors include travel agency American Express Co., which will provide reservation and fulfillment services, and Integrated Data Corp., Analytical Services Inc. and Bruin Wave Solutions LLC, which will provide information technology services.

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