Computer Sciences Gets $86M DHS Contract - Analyst Blog

Computer Sciences Corporation CSC 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.

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 services.

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 commercial sector.
 
Additionally, the company's traction in the cloud and partnerships with HCL, AT&T T, VMware VMW and Microsoft MSFT 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).