UK MoD Begins $8-11B Communications Overhaul
Under the terms of an $8-11 billion deal, a consortium led by EDS will consolidate the U.K. Ministry of Defence’s existing information networks into a single infrastructure under the Defence Information Infrastructure (Future) plan. The strategic goal is to facilitate communication between military headquarters, battlefield support and front-line operations by linking roughly 150,000 desktop computers and 340,000 individuals in some 2,000 locations. The budget for all three stages is GBP 4 billion (USD $7.6 billion), and add-on work could total another USD $3 billion…
The ATLAS Consortium is led by EDS, with Fujitsu Services as a Tier 1 partner, General Dynamics, LogicaCMG and EADS Defence and Security Systems Ltd (Cogent) as tier 2 partners, and IBM and HP as exclusive capability partners. ATLAS was awarded the contract for increment 1 of DII (F) in March 2005, with a budget of approximately GBP 2.3 billion (about $4 billion at the time).
EDS’ slice of the deal is the largest project booked by the IT services and outsourcing specialist since a 2002 Bank of America contract, but the firm has drawn criticism over its work for the U.K. tax authority, and other contracts. It also adjusted its earnings recently, related to its ability to deliver on a $6 billion contract it signed with the U.S. Navy in 2000.
Additional Readings
- EDS (Jan 4/07) – EDS-led ATLAS Consortium to Deliver Additional Phase of the Defence Information Infrastructure (Future) Contract. Confirmation that the ATLAs consortium will also deliver increment 2a of the contract enables EDS to increase its previously stated estimates for revenue from the MOD DII (F) contract over the next 8 years by $1.27 billion.
- EDS (March 22/05) – EDS-Led Consortium Signs Contract With U.K. Ministry Of Defence For Defence Information Infrastructure Project
- EDS (March 2/05) – EDS-Led Consortium Named Preferred Bidder For U.K. Ministry Of Defence Infrastructure Project
- EDS (March 2/05) – ATLAS Consortium Proud To Be Chosen as Preferred Bidder By The Ministry of Defence For The Defence Information Infrastructure (Future) Project
