Lockheed Martin gets $400 million Medicare IT consolidation work

Lockheed Martin gets $400 million Medicare IT consolidation work

The Centers for Medicare and Medicaid Services awarded Lockheed Martin Corp. a $400 million, eight-year contract to consolidate the agency's networks and systems.

Under the Consolidated Information Technology Infrastructure Contract, the Bethesda, Md., company will manage mainframe and desktop computers, servers, voice communications infrastructure and help desk services.

Lockheed Martin also will handle security and privacy services, database management, webcasting, Web hosting, and disaster recovery planning and operations.

'This is an important step to create a more efficient, effective CMS,' Health and Human Services secretary Tommy G. Thompson said. 'By consolidating these functions, we gain the potential for streamlined management and greater innovation.'

Over the years, a number of contractors have operated and maintained the Medicare and Medicaid IT infrastructure. Agency officials said consolidation of the IT contracts responds to changes in federal policies such as the Clinger-Cohen Act and Office of Management and Budget directives.

'Consolidating the management of our information systems is one of the innovations we are undertaking to improve service,' said Ruben King-Shaw Jr., the centers' deputy administrator and chief operating officer. 'These efforts will help us save money for taxpayers.'

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