Purchase of EDS Makes Hewlett-Packard the Newest Systems Integration Giant in Navy and DoD
Source: INPUT B2G Exchange Blog
Manufacturing giant Hewlett-Packard (HP) announced yesterday that it has closed its $13.9 billion purchase of Electronic Data Systems (EDS). With the purchase of EDS, HP immediately became one of the largest IT service providers at the Department of the Navy. However, the impact will be felt through all defense agencies.
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| “The purchase of EDS gave HP the ability to compete for contracts but they still have the difficult task of winning them too. The industry will be closely watching later this year as the newly expanded HP competes for Navy’s NGEN contract. Either way, with its purchase of EDS, Hewlett-Packard clearly intends to be a leading provider of IT solutions for the Defense community and a contracting force for years to come.” -Alex Rossino, Senior Analyst, Federal Opportunities |
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A Growing Debate: Government’s Role in Public Infrastructure
Source: INPUT B2G Exchange Blog
In the midst of growing budget deficits, federal and state and local governments are considering privatizing public infrastructure. This would allow private entities, companies and equity groups to operate and maintain highways, airports, bridges and tunnels and presumably charge a toll to make profit. In the DC area, we can see the Dulles Greenway and the proposed HOV lanes as examples. Even with support from high profile politicians, the question remains: should America’s public infrastructure be in the hands of the highest bidder?
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| “As budgets tighten at all levels of government, politicians are looking for innovative ways to save money. With safety and security at stake, privatizing public infrastructure has created a debate between efficiency and what’s best for the American people. Even as specific infrastructure projects, like the Dulles Greenway, privatize and gain popularity, the investors will come under greater scrutiny as Government oversight increases. But the potential upside to privatization ensures that the debate will continue.” -Jeremy Potter, Senior Analyst, Federal Opportunities |
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GAO Questions Accuracy of OMB's High Risk List
Source: INPUT B2G Exchange Blog
OMB reports thatt only 87 out of 472 IT projects on the list have significant budget or scheduling overruns. But GAO's report reveals the fact that agencies have been adjusting their cost and schedule baselines. In fact, the report states that 48% of the federal government's major IT projects have been rebaselined for reasons such as changes in project goals and funding.
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Serco Buys SI International for $423 million
Source: INPUT B2G Exchange Blog
British buyers continue their buying spree as Serco buys SI International for $423 million.
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| “Relative to other acquisitions in the government contractor market, Serco appears to be getting a deal (or conversely SI earning a low valuation) paying less than 1x revenue. SI has revenue of $555 million in the last 12 months as of June 2008. SI shareholders are not getting a bad deal, with Serco paying a 40% premium on the August 26th closing price.” -Ashlea Higgs, Senior Manager |
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