When talk turns to large, long-term deals, the Navy Marine Corps intranet contract with EDS inevitably comes up. After the first seven years, the contract calls for an optional extension of three years. But to continue as the outsourcing provider, a contract provision calls for EDS to cut its charges to the Navy by 15 percent. Capt. Chris Christopher, deputy director of the NMCI office, told me that figure was estimated based on anticipated technology improvements that would lead to greater efficiency and therefore lower costs, a sort of Moores Law factor, if you will. But based on reports of how much money EDS is losing on the deal, its difficult to imagine the giant integrator will be able to match that figure.Christopher said hes looking forward to a time when the Navy will be able to compare the known performance of EDS with bids from other providers. As it is, he cannot compare EDS performance with that of the Navy before the contractIT governance was that chaotic. As far as EDS is concerned, the company is trying to make the best of a bad situation. Earlier this month, the company announced it will consolidate and host several legacy Navy applications from an EDS-run facility. This will lower EDS costs considerably because the contract requirement that it take over and run those legacy applications had apparently been a huge cash drain for EDS. So far, the NMCI-EDS contract is showing that if your hands are tied, a little flexibility can go a long way. Out and about The U.S. National Archives and Records Administration is building an electronic archive and has selected two companies, Lockheed Martin and Harris, to compete for the final design. A year from now, the National Archives will select the winner to build the Electronic Records Archives, which will capture electronic information regardless of its format and save it permanently. Lockheed Martin will be paid $9.5 million for its work in the competition, and Harris will be paid $10.6 million. Stan Gibson can be reached at firstname.lastname@example.org. To read more Stan Gibson, subscribe to eWEEK magazine. Check out eWEEK.coms Enterprise Applications Center at http://enterpriseapps.eweek.com for the latest news, reviews and analysis about productivity and business solutions.
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