CSC inks multi-million dollar Navy deal

Computer Sciences Corporation today announced it has won a contract to design and install a shipboard and shore-based IT infrastructure for the Royal Australian Navy (RAN). The four-year contract is valued at $15 million if all options are exercised.

The agreement covers 17 RAN frigates, as well as supply, refuelling and support ships and three naval communications stations.

CSC will provide technical, analytical, engineering, program management and administrative support.

The vendor has already started work on stage one of the project, including the design, production, installation, testing and start-up of a local and wide area network (LAN/WAN) system at one land station and on one ship.

Stage two includes options to extend the LAN/WAN to two more land bases and 16 ships.

The project will allow ships to use e-mail and Internet communications at sea through a secure LAN and WAN for the first time. The system will be interoperable with Australia's coalition partners.

The work will be undertaken with fibre optics specialist CDM, logistics and training company KBR and information security company Network Forensics.

CSC Australia managing director Mike Shove said the contract extends its established relationship with the Defence Department.

Earlier in the week, Shove said the company is in a great position to win business against rivals such as EDS.

Up to 6500 EDS employees in Australia face an uncertain future after the company's CEO Michael Jordan announced the company will axe up to 20,000 jobs worldwide within two years in a bid to slash running costs by $US3 billion.

Commenting on the likely layoffs, Shove said EDS' focus on managing costs internally offers CSC more opportunities locally.

"Currently there are a number of second or third generation outsourcing contracts up for renewal and we are in a great position to win against our competitors; last year we renewed 90 percent of our customer base," Shove said.