Computer Sciences Corporation
) recently signed a blanket purchase agreement (BPA) with the
U.S. Department of Homeland Security's (DHS) Customs and Border
Protection (CBP) department to provide support to its financial
systems services. Computer Sciences will help CBP strengthen its
SAP-based capabilities by providing assistance, training as well
as upgrades for SAP users.
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The BPA and the first task order have a one-year base period and
four one-year options. Per the first task deal, Computer Sciences
has to manage issues related to the maintenance of financial
systems and at the same time provide functional support to CBP's
SAP users. It will also help in the development, utilization and
other related actions concerning assets, processes and systems
being acquired by DHS agencies.
The BPA has been awarded under the GSA schedule 70 contract and
is valued at $86.0 million. The first task order is valued at
$32.4 million. CBP is consolidating the agency's networks to
modernize and improve its operational efficiencies and financial
Computer Sciences' SAP solutions have helped federal agencies and
enterprises to create real-time value and increase IT
efficiencies and profitability. It helps customers to bring down
total IT cost.
It is noteworthy that the company is focusing on its cyber
business, the cloud computing market and the Big Data business.
Computer Sciences' cyber business gets its primary contribution
from the federal government and, to an extent, from the
Additionally, the company's traction in the cloud and
partnerships with HCL,
) are expected to drive growth, going forward.
However, the market is becoming competitive with companies like
CACI International Inc. and Accenture making their presence felt.
Delay in the government's order renewal process and constricted
federal spending are the near-term headwinds for the company.
Currently, Computer Sciences holds a Zacks Rank #2 (Buy).