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CSC wins outsourcing contract for U.S. Army

The computer services firm picks up an outsourcing deal for the U.S. Army worth $680 million, further extending its reach in the federal markets.

Computer Sciences Corp. today said it has been awarded an outsourcing contract for the U.S. Army worth $680 million, further extending its reach in the federal markets.

The deal, granted by the U.S. Army Material Command, calls for CSC to provide the information technology services and support required to reengineer, modernize and upgrade the Army's wholesale logistics business, the company said in a statement.

Today's announcement marks the computer services firm's latest win in a string of federal outsourcing contracts set in recent months.

In early October, the company was awarded a computer outsourcing deal worth $644 million for the county of San Diego, marking the largest outsourcing deal ever signed by a local government agency in the United States. CSC was chosen over competitors IBM Global Services and EDS.

Earlier this month, El Segundo, Calif.-based CSC nabbed an $8 million outsourcing deal with the U.S. Office of Naval Research. Under the five-year deal, CSC said its defense technology group will be responsible for engineering development and assessment, test program development and database design, and maintenance.

Under the U.S. Army deal, which will span a 10-year period, the company said it plans to offer employment to government employees effected by the contract. CSC will be responsible for keeping the current legacy logistics systems until they are replaced by the modernized or upgraded systems. Approximately 400 government employees at U.S. Army design centers in Pennsylvania and Missouri currently manage and support these services, the company said.

CSC's federal sector defense group will be the prime contractor on the account, leading a team that also includes computing giant IBM and Big Five management consulting firm KPMG.