HUD sets stage for IT overhaul

The Department of Housing and Urban Development is looking for a few good vendors for a 10-year contract worth at least $500 million to overhaul and run the agency's information technology systems.

The project—HUD Information Technology Services—would include data processing and management, data recovery, printing and distribution, local-area network communications and maintenance, and Web site administration, as well as the entire spectrum of IT support.

Lockheed Martin Corp. was awarded a $526 million contract in 1990 for the HUD Integrated Information Processing Service, which included data processing and telecommunications. That contract, which integrates the services of more than 200 subcontractors, has enabled HUD to provide users with information on subjects ranging from housing to mortgage specifications and to process 350,000 transactions a day dealing with federal housing issues.

The contract expires in 2003, and HUD plans to award a new contract early next year. HUD issued an initial draft of its request for proposals in May and a second draft June 25. A third draft will be issued this month.

"This is a very important technology initiative for HUD," said Janelle Boroday, senior associate at Booz-Allen & Hamilton Inc., one of several companies seeking the contract. "HUD wants a well-rounded team that can provide a full-service solution from strategy to implementation to complete their mission.

"The pulse in industry seems to be that we are all waiting to see how the proposal will be written—if it will incorporate changes in business and program management expectations as well as new technology expectations," she said.

HUD managers called together some of the leading vendors in April to discuss innovations in the IT marketplace and ideas for the project. Among those attending the meeting were officials from Electronic Data Systems Corp., IBM Corp., Science Applications International Corp., ACS Government Solutions Group, Unisys Corp., Lockheed Martin and Computer Sciences Corp.