Investors seen wary over Computer Sciences as flap over EPA contract clouds prospects

Article Abstract:

Computer Sciences Corp's latest contract with the US Environmental Protection Agency (EPA) is under inspection for claims that the EPA's lack of diligence has caused overpayment to Computer Sciences Corp (CSC), which is the EPA's largest contractor. This investigation has caused stock prices to drop 10 percent since Mar 2 1992, but investors seem chary of picking up CSC stock in light of the allegations. The EPA has ordered CSC to correct its accounting problems by Apr 30, 1992. The EPA's business with CSC makes up $68 million or 3 percent of CSC's yearly revenue; more than half of its revenue comes from other government contracts. The House subcommittee on oversight and investigations is questioning the EPA's business practices, as well as CSC's, since it allegedly got EPA-approved waivers to overpay 165 employees. CSC's market share has been good before this investigation, which may hurt them in government contracts and investment.

Column, Investments, Beliefs, opinions and attitudes, Investors, Investigations, Competition, Stock, Investigation, Accountability

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Computer Sciences will pay $2.1 million to settle charges by U.S. government

Article Abstract:

Computer Sciences Corp will pay $2.1 to settle federal government charges that the firm's Advanced Technology division overcharged the government on a major contract. The government contends that Computer Sciences misrepresented the qualifications of several employees working on a $347 million contract with the EPA (Environmental Protection Agency) and overcharged the government by approximately $572,000. The government had disbarred Advanced Technology from further bidding on government contracts until the charges were answered, and this disciplinary action is now lifted. Computer Sciences has not admitted any wrongdoing in the case but agrees to appoint an 'integrity officer' to ensure that all proposals and bids are compliant with federal regulations. The EPA, which is Computer Sciences' largest contracting partner, says it will reduce its reliance on the firm.

Management, Computer industry, Cases, Ethics, Cost, Legal Issues, National Government

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Computer Sciences beats out Xerox for Army contract

Article Abstract:

Computer Sciences Corp wins an Army contract valued at as much as $744.2 million. The contract is for a computerized information system, which is called Joint Computer-Aided Acquisition and Logistic Support (JCALS), that will interconnect 245 defense logistics sites located throughout the country. Computer Sciences beat out its rival, Xerox Corp, in bidding for the contract. Computer Sciences says technologies developed for the new government system will be valuable in the future in non-government markets. Originally, eight parties bid on the JCALS pact; the Army narrowed that field to Xerox and Computer Sciences in 1990. Both firms built prototypes before the final selection was made.

Office machines, not elsewhere classified, Computer peripheral equipment, not elsewhere classified, National security, Xerox Corp., XRX, United States. Army, Business logistics, Information systems, Integrated logistic support, Defense Contract, Logistics, Competitive Bidding

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