CMS taps EDS for data center work

The Centers for Medicare and Medicaid Services has awarded a new task order to EDS Corp. to help consolidate agency data center operations that support mainframe and client server applications.

The one-year contract, which has four one-year options, is worth $29 million if all options are exercised. Under the task order, EDS of Plano, Texas, will establish the first operational enterprise data centers, migrate and process fee-for-service Medicare claims and provide round-the-clock application hosting and production support services.

EDS is one of three companies competing for task orders under the 10-year, $1.9 billion Enterprise Data Center contract that the agency is using.

These data center operations are performed at more than 20 facilities. The enterprise data centers will be the hub of CMS' IT infrastructure for the next decade, and are central to its modernization initiatives.

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

Doug Beizer is a staff writer for Government Computer News' sister publication, Washington Technology.

About the Author

Doug Beizer is a staff writer for Federal Computer Week.

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