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EDS Awarded Multi-Million Dollar Contract From Centers for Medicare & Medicaid Services


17 Apr 2006, HERNDON, Virginia – EDS today announced the Centers for Medicare & Medicaid Services (CMS) awarded the company a one-year task order with four additional one-year options, potentially valued at $29 million if all extension options are exercised. The task order is the first to be issued to EDS under the CMS Enterprise Data Center Indefinite Delivery/Indefinite Quantity contract vehicle.

EDS ( is one of three companies competing for task orders under the 10-year, $1.9 billion Enterprise Data Center (EDC) contract that CMS is using to consolidate data center operations supporting mainframe and client server applications. These data center operations are currently performed at more than 20 different facilities. According to CMS, the Enterprise Data Centers will be the hub of its Information Technology (IT) infrastructure for the next decade and are central to its modernization initiatives.

“EDS is proud to receive the first task order for the Enterprise Data Center consolidation,” said Jim Duffey, EDS general manager, U.S. Public Sector. “EDS has supported Medicare since its inception and we are eager to continue that support as CMS consolidates their IT infrastructure and builds for the future.”

Under the task order, EDS will establish the first operational EDC, migrate and process fee-for-service Medicare claims for Medicare Administrative Contractor Jurisdiction 3 and provide 24x7 application hosting and production support services.

“The Enterprise Data Centers are the cornerstone of CMS’ information technology modernization program,” said Don Picard, EDS vice president of Federal Civilian Healthcare. “We are prepared to facilitate CMS’ move to a dedicated infrastructure that will modernize its legacy computing environment, speed implementations required by the Medicare Modernization Act and expand computing power and storage capacity.”

The result, said Picard, will be improved services, greater responsiveness in the implementation of policy changes, and more efficient business processes to drive cost savings.

CMS uses data center capacity provided by industry to support its client server applications and claims processing for Medicare. The agency anticipates claims processing demands will continue to grow as the Medicare beneficiary population increases from approximately 40 million in 2005 to a projected 50 million by 2013.

EDS’ breadth of experience supporting the Medicare program spans nearly four decades and touches a number of critical Medicare services. The company is the largest provider of Medicare fee-for-service data center operations, processing more than 285 million claims each year. EDS also maintains the Medicare Part B Standard System, used to process over 800 million claims annually, and is the largest CMS Program Safeguard Contractor providing fraud, waste and abuse detection services in a variety of states.

EDS’ wholly owned subsidiary, National Heritage Insurance Company (NHIC), is a Medicare Part B Carrier that administers $8 billion in Medicare benefits annually for beneficiaries in California, Maine, Vermont, New Hampshire and Massachusetts. NHIC was recently selected by CMS to also administer the Medicare Durable Medical Equipment program in the Northeast.

EDS operates data centers worldwide and will employ two of its most advanced U.S. facilities to support the EDC as the primary and disaster recovery data centers.

The statements in this news release that are not historical statements, including statements regarding the amount of new contract values, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond EDS’ control, which could cause actual results to differ materially from such statements. For information concerning these risks and uncertainties, see EDS’ most recent Form 10-K. EDS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About EDS

EDS is a leading global technology services company delivering business solutions to its clients. EDS founded the information technology outsourcing industry more than 40 years ago. Today, EDS delivers a broad portfolio of information technology and business process outsourcing services to clients in the manufacturing, financial services, healthcare, communications, energy, transportation, and consumer and retail industries and to governments around the world. Learn more at


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