SAIC Awards Purchase Agreements to CDW Government and Collins Consulting, a CDW-G Small Business Partner
SAIC Purchases Information Technology Products and Fulfills Government Requirement to Empower Small Businesses
MCLEAN, VA and HERNDON, VA - May 16, 2005 - Science Applications International Corporation (SAIC) and CDW Government, Inc., the government and education subsidiary of CDW Corporation [NASDAQ: CDWC], announced today that SAIC has awarded master purchase agreements to CDW-G and Collins Consulting, Inc., a member of the CDW-G Small Business Partner Consortium. The agreements are the result of a comprehensive, competitive process through which SAIC sought to increase its contracting with small businesses, reduce its costs and streamline its procurement of Information Technology (IT) products in the fulfillment of SAIC's government contracts.
Under the three-year agreements, SAIC will issue purchase orders for comprehensive IT solutions from Collins Consulting, Inc. of Schaumburg, Ill. In turn, the small business will leverage CDW-G's e-commerce, service and distribution capabilities to support the fulfillment of IT products that meet the full range of SAIC's requirements. Through the agreements, SAIC could spend as much as $32 million annually on IT products needed to fulfill requirements of its federal government contracts, as well as its corporate needs. The agreements will allow SAIC to lock in savings for three years in a tiered discount framework that increases the discount provided to SAIC as the company's purchasing volume increases.
The agreements with CDW-G and Collins Consulting will not only help SAIC to control costs, they will also enable SAIC to expand its relationships with qualified small businesses. Approximately 95 percent of SAIC's business is with federal agencies, and the majority of its federal contracts include requirements to subcontract with small businesses.
"It is SAIC's procurement practice to implement, and wherever possible, exceed the spirit and intent of the government's small business program objectives," said Kristine Petka, Assistant Vice President and Director of Strategic Spend Management at SAIC. "We are eager to help small businesses grow, and this contract allows us to integrate them into the process and provide the best prices to our customers at the same time."
SAIC will benefit from CDW-G's overnight delivery and staged shipment capabilities as well as Collins Consulting's transaction management and configuration management. The small business will provide day-to-day customer service and interact with various SAIC organizations.
"We are excited to enter into this leading-edge agreement with SAIC," said Jim Shanks, President of CDW-G. "Integrating the Small Business Partner Consortium into this agreement is a win for everyone: SAIC benefits from having small business services at its disposal; the small business receives maximum exposure; and CDW-G is able to satisfy the needs of both its customers and partners."
"The agreement gives us the ability to expand our IT services work with federal agencies and gain experience working with major contractors - both SAIC and CDW-G," said Bob Collins, President of Collins Consulting. "At the same time, it allows SAIC to work toward its goals for contracting with service-disabled, veteran-owned small businesses with a high probability of success."
SAIC is the largest employee-owned research and engineering company in the United States, providing information technology, systems integration and eSolutions to commercial and government customers. From science to solutions, SAIC engineers and scientists work to solve complex technical problems in national and homeland security, energy, the environment, space, telecommunications, health care and logistics. With annual revenues of $7.2 billion, SAIC and its subsidiaries have more than 42,000 employees at offices in more than 150 cities worldwide. More information about SAIC can be found on the Internet at www.saic.com.
A wholly owned subsidiary of CDW Corporation (NASDAQ: CDWC), a FORTUNE 500 company, CDW Government (CDW-G) is a trusted technology advisor to federal, state and local government agencies, as well as to educational institutions at all levels. CDW-G offers best-in-class technology products and services from top-name brands such as APC, Apple, Cisco, HP, IBM, Microsoft, Sony, Symantec, Toshiba and ViewSonic. For more information about CDW-G product offerings, procurement options, service and solutions, call 1.800.863.4239, or visit the CDW-G Web site at CDWG.com.
Statements in this announcement other than historical data and information constitute forward-looking statements that involve risks and uncertainties. A number of factors could cause SAIC actual results, performance, achievements or industry results to be very different from the results, performance or achievements expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in the Company's Annual Report on Form 10-K for the period ended January 31, 2004, and such other filings that the Company makes with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.
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Press/Public Relations Contacts:
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Jared Adams - McLean, VA
CDW-G Public Relations
Andrew H. LaVanway
O'Keeffe & Company