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Affiliated Computer Services is about to fully embrace the federal market again as a non-compete agreement it signed with Lockheed Martin Corp. expires Nov. 24.

If you look at the business wesold in 2003, it was predominately a staff-augmentationbusiness. As we go back intothe market, we are going back much morealigned with the heritage of ACS, which isresults-based business process outsourcingand information technology outsourcing.A lot of the solutions we are bringing aremature solutions we already offer in the stateand local, health care, transportation andother segments. What I call our four aces: mailroomand administrative services, customercare, finance and accounting, and intelligenttransaction processing. If you go to a thirdpartyanalyst, they recognize these solutions,so we have immediate credibility, and it letsus jump-start our business. When I was hired inMarch 2007, the federal businesswas federated, so we'vecentralized it. A year ago, wedidn't have a central salesteam; now we have a salesleader in Ann Will. We'veadded sales people in key agencies.We have Gino LaMarca asour chief operations officer.We have been focused onthe pipeline and understanding what theopportunities are in the marketplace, andbuilding a pipeline that could sustain thegrowth of the business over time. We look atthe federal market as a double-digit growthmarket for us for the foreseeable future. Limited past-performance contracts,limited resources, limited contractvehicles and limited customer relationships.When I look at what we sold to Lockheed,the two things I covet most are the relationshipswe sold and the contract vehicles. Youjust can't create those; you have to earn those.We have been looking at acquisitions thatcould bring us those.Because of our size, every client has to be asuccessful client. We cannot afford to haveone contract that is not referenceable.

Headquarters: Washington, D.C.

Leadership: Tim Conway, senior vice president and
managing director; Gino LaMarca, chief operating
officer; Ann Will, vice president of federal sales; Mars
Mariano, chief technology officer; Wilson Golden, vice
president of federal government relations; Joe Fields,
vice president of federal business development.

Lines of federal business: Mailroom and administrative
services, customer care, finance and accounting,
and intelligent transaction processing.

Employees: 3,300.

Revenue: $300 million.

Major customers: The Agriculture, Defense,
Education, Homeland Security, Justice, Labor, State
and Treasury departments; the Centers for Medicare
and Medicade Services, the Social Security;
Administration and the Pension Benefit Guaranty Corp.

Affiliated Computer Systems Inc., of Dallas, is
about to fully embrace the federal market
again when a noncompete
agreement it signed with
Lockheed Martin Corp. expires
Nov. 24.

Compared to the businesses it
sold to Lockheed in 2003, ACS
is bringing a new approach
and new solutions under Tim
Conway, its federal leader.
Conway spoke recently to
Editor-in-Chief Nick Wakeman
about the strategy behind ACS' return to the
federal market.

Q: Why get back into the federal market?


Q: What solutions will ACS bring to market?


Q: How have you been preparing to return
to the market?


Q: What are your challenges?