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Army Awards Potential $700 Million Computer Contract

July 31, 1990

ALEXANDRIA, Va. (AP) _ The U.S. Army has awarded a Herndon, Va., firm a contract worth potentially $700 million to produce an office computer system, officials said Monday.

Electronic Data Systems received the indefinite delivery, indefinite quantity contract Thursday from the Army’s Information Systems Selection and Acquisition Agency.

The computers will be used for administrative tasks by the Army, Navy and the Defense Logistics Agency, Army spokeswoman Helen Garamone said.

Each 32-bit modular unit will be able to handle from four to 16 users, she said. The government expects to buy between 40 and 20,000 units worldwide by 1995, she said.

The contract also includes a wide range of peripherals, software and networking products. Electronic Data is responsible for engineering, installation, training and maintenance.

The contract also requires Electronic Data to construct the system so it can interact with the Army’s many existing computer systems and some planned ones, Ms. Garamone said.

Electronic Data plans to subcontract 25 percent of the work to small businesses.

The government first asked for proposals for the system in March 1988, Ms. Garamone said.

Award of the contract was postponed because more bids than expected were received and resulted in a longer evaluation period, according to Barbara Johnson, a contracting officer.

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