No. 9: CSC is on a winning streak
Strategy focuses on logistics, training, health care and other core markets
- By Lisa Terry
- May 02, 2008
It was a big transition year for Computer Sciences Corp., which welcomed a new chief executive officer, relocated its headquarters and unveiled a fresh strategy. But the changes didn't seem to slow the company's federal contract business as it successfully defended several large recompetes and forged new ground in six targeted high-growth areas.
After insider Michael Laphen was named CEO in May 2007, the company announced a five-year strategic growth plan, Project Accelerate. CSC also relocated its corporate headquarters to Falls Church, Va., from El Segundo, Calif., to concentrate resources near one of its largest customers, the federal government.
CSC ranks No. 9 on this year's Top 100 list with $3.7 billion in prime contracting
The goals of Project Accelerate include sustaining and growing CSC's core business.
"In an environment of [indefinite-delivery, indefinite-quantity] task contracts, we're in an excellent position to respond to a wide portfolio of contracts," said Jim Sheaffer, president of the North American Public Sector division.
Sheaffer reports the successful defense of $5 billion in recompetes in CSC's most recent fiscal year, including a $544 million contract to provide facility support services at the NASA Johnson Space Center in Houston and an $820 million award to provide technical services at the Air Force's Eastern Range at Patrick Air Force Base, Fla.
CSC is focusing on six high-growth areas ? logistics, identity management, health services, training and simulation, infrastructure services, and command and control. They are already responsible for 30 percent of CSC's federal business.
CSC is pursuing task-order contracts in the Homeland Security Department's Enterprise Acquisition Gateway for Leading Edge Solutions contract, a Citizenship and Immigration Services transformation program, and an operations and maintenance contract for the Hanford Nuclear Facility in Richmond, Wash. The company awaits word on an operations contract for NASA's Kennedy Space Center in Florida.
CSC's reach into almost every federal agency and its ability to balance across government, international and commercial sectors enables it to weather financial ups and downs, Sheaffer said.
"The uncertainty around the election has a lot of us just trying to make sure we're spreading our investments, concentrating in areas we think are important regardless of which party wins and dominates in Congress," Sheaffer said. One of those areas is cybersecurity, he said.
"CSC had extended heavily into civilian agencies in the last couple of years, and it's been a lean couple of years for civilian agencies," said Shawn McCarthy, research director of infrastructure operations and vendor programs at IDC Government Insights. "CSC has done a good job corralling good contracts and proving they can deliver in a timely manner."
Along with the budget uncertainty, prime contractors' business practices are under the microscope.
"In an environment as highly partisan as it is now, we expect a lot more scrutiny and oversight of programs," Sheaffer said. "We have to be as transparent as possible with customers" to create trust.
Another essential quality is the ability to respond quickly to changing needs, Sheaffer said.