MARKET WATCH

Increasingly, the major players in federal information technology and defense technology services, or government tech services, are the aerospace and defense primes.

HP-Compaq Merger Could Aid Resellers

Hewlett-Packard Co.'s plan to buy Compaq Computer Corp. is good news for GTSI Corp., according to GTSI's chief executive Dendy Young. The merger, said Young, would help his company better compete against what he called "the Dell threat."

GTSI Wins Contract For Ruggedized Notebooks

GTSI Corp., Chantilly Va., has won a three-year blanket purchase agreement worth up to $28 million to supply the Marine Corps with ruggedized notebook computers, the company announced Sept. 11.

Convansys Wins $14.5 Million Nebraska Contract

Covansys Corp. has won a $14.5 million contract to implement a new pension administration system for the Public Employees Retirement Board of Nebraska, the company announced Sept. 11.

Billions Ahead for Integration Services Market

The market for solution integration services is growing rapidly and will top $100 billion by 2005, according to research released by market research firm International Data Corp.

Red Hat CEO Proposes Non-Profit Organization to Help Schools

Commercial Linux vendor Red Hat Inc., Durham, N.C. wants to establish a non-profit organization that would introduce Linux and open source software to the education market.

CIA Incubator Technologies Ready for Active Duty

In-Q-Tel Inc., the Central Intelligence Agency's venture capital arm, has invested $30 million over the past two years in companies with promising technologies.

CACI Racks Up Another Deal

CACI International Inc. plans to purchase Digital Systems International Corp. Terms of the transaction were not disclosed, but privately held Digital Systems International had revenue of $55 million over the past 12 months.

CSC Marks $2 Billion Win With Silence

For Computer Sciences Corp., winning the National Security Agency's huge Groundbreaker outsourcing contract has been like catching a tiger by the tail.

IBM Gears Up Grid Networking for Marketplace

IBM Corp. raised eyebrows in the technology community Aug. 2 by winning a contract to help build the United Kingdom-funded National Grid network.

Compaq Pitches Support Services Role

Compaq Computer Corp.'s subcontracting role on the recently announced $2 billion National Security Agency Project Groundbreaker ? won by Computer Sciences Corp. ? is more than just sweet success for the Houston company. It represents the federal unit's new emphasis on being the sole provider of both hardware and support services for integrators.

GovConnect Climbs Market With Secure Toehold

At a time when many young companies are struggling to survive in the highly competitive state and local government market, GovConnect Inc. has not only found a firm toehold, it has managed to thrive.

Robbins to Lead SGI's New Field Operations Unit

Silicon Graphics Inc. has tapped Anthony Robbins, president of its federal unit, to head up the newly created North American field operations division.

Federal Lawsuit Adds to AMS Woes

The $350 million lawsuit filed July 17 against American Management Systems Inc. by a federal agency for alleged failure to perform is the latest in a string of legal conflicts, which are casting a pall on the company's operations.

IBM Flexes Its Muscles In Government Market

When the news came in April that IBM Corp. was named prime contractor for the U.S. Customs Service's 15-year, $1.3 billion modernization contract, a lot of folks in government and industry took it to mean Big Blue was returning to the federal marketplace, years after selling off its government unit.

Government Leads IT Spending

Government sector spending is expected to lead all market areas worldwide, according to a new report by Gartner Inc. of Stamford, Conn.

Many Increase IT Budgets, Despite Cutbacks

A new survey has found that despite layoffs and cutbacks among IT vendors, many organizations are increasing their IT budgets in 2001.

AMS Stock Plummets as Investors Flee $350 Million Lawsuit

American Management Systems Inc. took a pounding on Wall Street the day after it was sued by one of its federal customers for $350 million for failure to perform. The company's stock dropped nearly 24 percent from $21.30 to $16.24 July 18 after the Federal Retirement Thrift Investment Board terminated a contract with AMS and filed suit against it.

Lockheed Martin IMS Taps Former Netgov, Carta Execs

Lockheed Martin IMS has resurrected major portions of the now defunct Netgov.com and Carta Inc., announcing July 11 that it had hired former top executives and employees from the two e-government companies and purchased proprietary software from Netgov.

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