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Groundbreaker

On 31 July 2001 Computer Sciences Corporation (NYSE: CSC) announced that a CSC-led joint venture, the Eagle Alliance, has been awarded the Groundbreaker contract by the National Security Agency (NSA). CSC is the managing partner of the Eagle Alliance, which was formed in partnership with Logicon, a Northrop Grumman company. The contract is estimated to be valued by NSA in excess of $2 billion if all options are exercised. The contract has a potential duration of 10 years.

Computer Sciences Corporation, one of the world's leading consulting and information technology (IT) services firms, helps clients in industry and government achieve strategic and operational results through the use of technology. The company's success is based on its culture of working collaboratively with clients to develop innovative technology strategies and solutions that address specific business challenges.

Logicon Inc., a Northrop Grumman (NYSE:NOC) company, is a partner with Computer Sciences Corporation (NYSE:CSC) in a joint venture, the Eagle Alliance, that has been selected by the National Security Agency (NSA) for the Groundbreaker contract, the Agency's largest information technology (IT) outsourcing program.

Through Logicon's acquisition of DPC Technologies in 1999, Logicon had extensive experience with NSA's prior outsourcing efforts. This provided a unique understanding of the Agency and its business operations, and this will be of significant value to the Eagle Alliance. DPC Technologies was among the contractors selected for NSA's softsourcing program, Soft Landing, in 1997. DPC Technologies was also a member of CSC's Breakthrough team, the Agency's pilot program for outsourcing launched in 1998.

Northrop Grumman Information Technology is a premier provider of advanced IT solutions, engineering and business services for government and commercial clients. Headquartered in Herndon, Va., the company has more than 22,000 employees and annual sales of nearly $4 billion. Northrop Grumman IT's expertise spans such areas as information systems integration; command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR); enterprise hardware and software solutions; training and simulation; base and range support; signals intelligence; space systems; health informatics; and specialized scientific, engineering and technical services.

The Eagle Alliance and its subcontractor companies provide secure and non-secure telephony and network services, distributed computing services, and enterprise and security management of the non-mission information technology infrastructure at NSA headquarters and surrounding offices. When the contract took full effect in November 2001, CSC assumed responsibility for transitioning approximately 750 NSA employees [by initial estimate] into the Eagle Alliance and began a modernization of the agency's information technology infrastructure.

The Eagle Alliance was created for and dedicated to NSA and the Groundbreaker program. It was intended to provide a cost-effective model for fulfilling NSA's requirements and provides a single framework for the delivery of services by all Eagle Alliance members.

With full financial backing of CSC and Northrop Grumman, the Eagle Alliance provides a single point of accountability -- the senior executive, initially Timothy J. Sheahan. In his new position, Sheahan reported to Tom Robinson, president of the Defense Group within CSC's Federal Sector and chairman of the alliance.

The Eagle Alliance also includes Strategic Alliance Partners -- key members of the delivery team from the beginning, who are committed to the success of Groundbreaker: General Dynamics for telephony and networks, Keane Federal Systems for distributed computing and enterprise management support, as well as Omen Inc (a small business) to fully integrate the members of the Eagle Alliance Small Business Consortium. Other companies, such as ACS Defense, BTG, CACI, Compaq, TRW, Windermere, Fiber Plus, Verizon and Superior Communications make up the team of Technology and Service Delivery Partners.

CSC was committed to supporting NSA in this landmark opportunity to use Tier 1 outsourcing credentials to modernize and streamline their operations and reduce costs. This award represents a continuation of the trend among government agencies to utilize best commercial practices and employ information technology to help meet operational objectives while making better use of IT budgets. CSC supports the requirements of the National Security Agency in a second-to-none secure environment.

CSC will leverage its global capabilities to bring the full power of the company in supporting NSA. The overall solution for NSA capitalized on CSC's experience in developing strategies, implementing technologies and achieving service delivery levels for large, global clients. The combination of extensive outsourcing experience, information security expertise, and 40-year heritage of supporting the federal government ideally positioned CSC to understand the overall needs of the National Security Agency and deliver the results they require.

In December 2001 the Eagle Alliance, the joint venture led by Computer Sciences Corporation (NYSE: CSC) supporting the National Security Agency, announced it has completed a three-month employee transition period and successfully transitioned more than 1,000 federal employees, contractors and incumbent staff to the Eagle Alliance.

In August 2005 the Baltimore Sun reported that NSA modernization projects such as Groundbreaker and Trailblazer, intended to improve the agency's internal computer networks and eavesdropping equipment, were years behind schedule and hundreds of millions of dollars over budget.



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