EDS inks $170 million IT outsourcing subcontract

EDS Corp. has won a $170 million subcontract from Northrop Grumman Corp. to support San Diego County's massive IT and telecommunications outsourcing contract.

Under the subcontract, EDS of Plano, Texas, will furnish data center, help desk and cross-functional services to San Diego County. The company also will supply application management support for the county's Health and Human Services agency, EDS said in a statement.

Northrop Grumman IT of McLean, Va., won the seven-year, $667 million outsourcing pact in January as the leader of a team that included EDS, BearingPoint Inc. and AT&T Corp.

Terms of the outsourcing pact call for Northrop Grumman and its team to oversee San Diego County's data center, help desk, desktop, network, applications and cross-functional IT and telecommunications services. The contract also has a five-year extension option, valued at about $500 million.

Northrop Grumman and its team replaced Computer Science Corp., El Segundo, Calif., which won the initial outsourcing contract with San Diego in 1999.

EDS has about 117,000 employees and had annual revenue of $20.6 billion in fiscal 2004. The company ranks No. 6 on Washington Technology's 2005 Top 100 list of federal prime contractors. The 2006 list will be released May 15.

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