Computer Sciences Corporation
) has won a new contract yet again. This is basically a contract
from the U.S. Coast Guard that was awarded to 11 companies, for a
total value of $11 billion.
As per the agreement, the company will provide support
services to the U.S. Department of Homeland Security (DHS). A
closer look at the contract reveals that CSC has to manage issues
related to the support and design, development, utilization and
other related actions with respect to assets, processes and
systems being acquired by DHS agencies.
The work agreement includes ship system design and
engineering, enterprise architecture and information systems
management. This apart, modeling and simulation, enterprise
resource management, quality assurance and R&D are other
important aspects of the contract.
Computer Sciences has been on a deal winning spree. A
couple of months back, the U.S. General Services Administration
(GSA) awarded CSC with blanket purchase agreements (BPAs) to help
provide email as a Service (EaaS). CSC is one of the 17 companies
to have won the $2.5 billion contract.
Additionally, CSC won two GSA contracts, of which, one will be
based on the
) Exchange platform and the other on the
) platform. The contracts have a two-year base period with
renewal options over the next three years. The BPAs have been
awarded as GSA Schedule 70 contracts.
Moreover, the company has decided to focus on its core
competencies. A couple of months back, the company signed a
definitive agreement to sell its credit service business to
) for $1.0 billion. Around $300 million to $400 million of the
proceeds will be used by the company for share buyback, around
$300 million to $400 million for its pension plans and the rest
for general corporate purposes.
Although the company is making headway in every possible
segment of its business, intense competition in the IT and cloud
computing space from both small and big players and a challenging
macroeconomic condition in Europe may pose some challenges for
Currently, Computer Sciences has a Zacks Rank #2 (Buy).
COMP SCIENCE (CSC): Free Stock Analysis
EQUIFAX INC (EFX): Free Stock Analysis Report
GOOGLE INC-CL A (GOOG): Free Stock Analysis
MICROSOFT CORP (MSFT): Free Stock Analysis
To read this article on Zacks.com click here.