Northrop to merge DPC into Logicon

Northrop Grumman Corp. plans to expand its federal systems integrator subsidiary Logicon Inc. in Herndon, Va., through the $33 million acquisition of Data Procurement Corporation Inc. of Laurel, Md.

DPC, an 8(a) company with 180 employees, had revenue of about $60 million in 1998, all of it through systems integration, engineering services and the resale of hardware and software to the departments of Defense and Energy and various intelligence agencies.

DPC will be folded into one of Logicon's five business units, said Robert Koch, director of corporate communications for Logicon. There will be no change in the work force or its offices, Koch said.

"The business they do marries well with the work we do under [Integrated Computer-Aided Software Engineering], a contract Logicon won a number of years ago to do value-added reselling of software," Koch said. "The company also has strong experience in procuring supercomputing equipment for the government."

DPC, founded in 1988, was certified in 1994 by the Small Business Administration as a small, disadvantaged, woman-owned business.

One of DPC's most recent awards was a $7 million systems integration contract for the Charette Naval Hospital, Portsmouth, Va., which opened in April. DPC installed 2,000 Compaq Computer Corp. workstations and about 12 Compaq servers there, said Anthony Ward, vice president of professional services at DPC.

Northrop Grumman's acquisition of DPC, which was announced this month, requires approval of the Justice Department's antitrust division and other government regulators. The deal is expected to close in 30 days.

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SunGard upgrades OMB systems

Systems integrator SunGard Computer Services Inc. has taken over operation of the mainframe systems that the Office of Management and Budget uses to prepare, produce and distribute the federal budget.

SunGard moved OMB's IBM Corp. mainframe-based system from a federal office building in Washington, D.C., to its data center in New Jersey, said Steve Dock, senior vice president at Wayne, Pa.-based SunGard. The company also upgraded the operating system, database and other utilities and hardware to take advantage of the latest technology, Dock said.

SunGard won the task order in September under the General Services Administration's Virtual Data Center services contract.

Under the task order, SunGard will continue providing OMB with outsourcing services, including network management, mainframe operations and technical support through 2007.

SunGard competed against Computer Sciences Corp. and Unisys Corp. for the task order, which is valued at an estimated $16 million.

"SunGard, compared with Unisys and CSC, has a long history in financial services for large organizations," Dock said.

Last year the company won an eight-year, $16.8 million task order under the GSA contract to provide data center outsourcing services to the Export/Import Bank.

Under that task order, SunGard provides technical support for the bank's mainframe data, insurance, loan guarantee, accounting and claims applications. The job includes the operation of all the bank's data center functions at one of SunGard's outsourcing data centers.