Analysis: CSC drawn to SRA's contracts, health IT work
SRA International’s strong position in the health care market and its mastering of many large governmentwide acquisition contracts were important drivers in Computer Sciences Corp.’s desire to fold SRA into its soon to be independent government business.
According to an analysis by the market research firm Govini, CSC’s civilian has held relatively steady, but its defense business has dropped since 2011.
“The addition of SRA provides CSGov [what CSC is calling its public sector business, for now anyway] with a stronger foothold at key health agencies: Department of Health and Human Services and Department of Veterans Affairs,” Govini wrote in a report it provided to Washington Technology.
A breakout of CSC and SRA prime contract revenue by civilian, defense and health customers (HHS and VA).
SRA’s civilian and defense business has held steady, but its health took a jump between 2012 and 2013, growing from about $150 million annually to $250 million. The overall health market also is growing with the VA and HHS IT budgets going from $8 billion in fiscal 2012 to $10 billion in fiscal 2014.
By acquiring SRA, CSC is strengthening its position in a growing market area, according to Govini’s analysis.
A second factor Govini cites for the acquisition is SRA’s strong position on several large task order contracts. SRA has captured more business under these vehicles than CSC has. These contracts include Alliant, Mobis, NIH CIO-SP2 and SP3, and the CDC Information Management Services contract [CDC CIMS]. SRA also brings CSC a spot on the VA T4 contract.
CSC is acquiring SRA's strong position on several important contract vehicles heavily used in the health, cloud, cyber and big data sectors.
These contracts are important vehicles for health IT opportunities as well as cyber, cloud and big data, according to Govini.
“SRA provides CSGov with stronger sales channels into these customers,” the analysis states.
Govini also backed up CSC’s claim that the combination of SRA and CSC will create the leading pure play IT and professional services company in the market.
The research company had CSC ranked fourth, but with the addition of eighth ranked SRA, the new entity nudges out Booz Allen Hamilton with more than $3.5 billion in prime contracts.
The acquisition of SRA moves CSC to the top position among pure play IT and professional services firms.
Posted by Nick Wakeman on Sep 16, 2015 at 9:30 AM