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Roundup: HUD Awards Data IT Contract to EDS

The Department of Housing and Urban Development has awarded a technology contract worth at least $750 million to Electronic Data Systems, Plano, Texas.

Under the contract, which has a base period of four months followed by nine option years, EDS will develop and maintain information and technology systems for the agency.

"EDS will furnish personnel, hardware and software, telecommunications, facilities, and services needed to deliver HUD's basic IT functions at more than 80 HUD offices nationwide," according to a HUD press release.

The awarding of the HUD "information technology services" (HITS) contract to EDS came as a surprise to Lockheed Martin, Bethesda, Md., which for 13 years serviced HUD's IT requirements under the HUD integrated information processing service (HIIPS) contract.

HUD claims that the HITS contract, "will greatly improve the quality" of its IT infrastructure service, "and reduce the funds spent for IT infrastructure service by at least 5% per year over what would be required to be spent under the HIIPS contract if it were to continue."

Lockheed Martin is trying to find out why it lost the IT contract to EDS.

"While we are disappointed at this outcome, we have requested a debrief and look forward to learning how HUD made its selection of EDS for the critically important 10-year HITS program," said a spokeswoman for Lockheed Martin.

HUD last week declined to comment on the contract.

The HITS contract has performance incentives and in time could be worth as much as $860 million.

EDS also provides technology infrastructure to support MERS, the industry-owned, electronic registry to track the ownership of beneficial interests and servicing rights related to mortgage loans.

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