DynCorp expands reach in federal market

DynCorp, one of the largest employee-owned technology companies in the country, yesterday announced the completion of its purchase of GTE Information Systems LLC.

The acquisition of GTE Information Systems will enable DynCorp to increase its high-end information and networking services, according to Charlene Wheeless, director of corporate communications at DynCorp.

"We have offered information technology to our customers in the past but not at the same magnitude as [GTE Information Systems has]," Wheeless said. "We want to be a one-source solution for our customers."

The acquisition of the Chantilly, Va.-based company will make it possible for DynCorp to bid on a larger variety of projects and meet more of its customers' needs. One example would be DynCorp's ability to not only conduct maintenance on military aircraft but to upgrade information and communications systems as well, Wheeless said.

"We were having trouble getting parts to maintain the technology components for our customers," she said. "Now we will be able to create a direct supply chain for them." GTE Information Systems contracts and sales are expected to increase DynCorp's annual sales $300 million in 2000.

"We don't have contracts which overlap, so this expands our reach with the federal government," Wheeless said. "It will also open the door to agencies we did not have contracts with before, such as [the Defense Information Systems Agency]."

The change of ownership should not affect the completion of any GTE Information Systems contracts or the way in which the company addresses IT problems, shed said.

In 1997, GTE Corp. decided to sell off most of GTE Government Systems Corp. and focus on its core communication services, such as wireless communications, the Internet and local telephone service, said Bobbi Hennessey, a spokeswoman for GTE. Three units of GTE Government Systems --- GTE's Communications Systems Division, GTE's Worldwide Telecommunications Service Division and GTE's Electronic Systems Division --- were sold to General Dynamics Corp. in June (FCW, June 28).

GTE, General Dynamics and DynCorp would not disclose the purchase price for the four units of GTE Government Systems, but it surpassed GTE's expectations, Hennessey said.