Business Services Industry

Electronic Data Systems Awaits HUD's Decision on Telecommunications Proposals.

Knight Ridder/Tribune Business News, January, 2004

By Crayton Harrison, The Dallas Morning News Knight Ridder/Tribune Business News

Jan. 6--Electronic Data Systems Corp. is waiting to see whether the federal government will force it to compete all over again for the lucrative contract it won with the department of Housing and Urban Development.

The contract to build and maintain HUD's computer and telecommunications network is worth as much as $860 million over 11 years. HUD awarded it in August to Plano-based EDS over Lockheed Martin Corp., which quickly protested the decision.

The General Accounting Office agreed with Lockheed's complaints that HUD didn't properly evaluate the contract proposals and recommended a re-bid in a December report. HUD attorneys are reviewing the GAO's...

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