San Diego awards IT outsourcing contract to Northrop Grumman - SharedXpertise - Business transformation, shared services, business process outsourcing

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San Diego County awards 7-year IT outsourcing contract to Northrop Grumman

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29 Dec 2005 | (News)

Northrop Grumman IT, pending approval of the San Diego County Board of Supervisors, is set to take over management of the county’s IT services from Computer Sciences Corp.

The seven-year IT outsourcing contract with Northrop Grumman’s IT division, based in McLean, Va., would be worth $667 million, said Michael Moore, CIO for San Diego County. The proposed contract also has one five-year option, which would be priced at about $500 million, Moore said.

The initial contract calls for the county to pay Northrop Grumman $93 million annually, plus about $10 million in start-up costs, which will be spread over the life of the project.

The county currently pays CSC of El Segundo, Calif., about $100 million annually to manage its IT services, under a contract awarded in 1999.

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