CSC settles contract dispute with government
- September 28, 2011
Falls Church-based CSC has finalized a settlement with the U.S. government over a contract dispute.
Under the terms of the definitive settlement announced Wednesday, CSC, a technology services company, will receive a lump-sum payment of $277 million and a five-year contract extension (four base years plus one option year) with an estimated value of $1 billion to continue to support and expand the capabilities of the systems covered by the original contract. The government will receive expanded rights to CSC intellectual property used in fulfilling the contract.
The case has been pending before the Armed Services Board of Contract Appeals. Last November, the government and CSC agreed to engage in a non-binding alternative dispute resolution process to resolve all outstanding claims and other issues connected with the contract. CSC announced on Aug. 24 that an agreement in principle had been reached.
In its August announcement, the company said the settlement will result in a non-cash, pre-tax charge to earnings in its second fiscal quarter of approximately $250 million reducing EPS by an estimated $1.15.