EDS pledges £600m savings in MoD personnel deal

EDS has extended a personnel deal it has with the armed forces in the UK, an announcement that may bode well for the upcoming Ministry of Defence £4bn Defence Information Infrastructure (DII) contract.

No value has been revealed but an EDS plans to work together with the Armed Forces Personnel Administration Agency (AFPAA) to pull together standalone systems and improve services for soldiers, sailors and air force personnel and save the MoD £600m over 10 years, according to the services giant.

The bidding process for the huge DII contract is in the home straight with just two major consortia left.

EDS leads the Atlas group which also includes Cogent, Fujitsu Services, General Dynamics and LogicaCMG. Meanwhile the CSC-led RaDII group also comprises BT, Capgemini and Thales.

Lockheed Martin and partners dropped out of the running in March this year with IBM bowing out at the end of 2003.

A 'best and final bid' stage is expected next month with a decision at the start of next year.

On the AFPAA deal today, EDS said in a statement that it "marks a turning point in the way suppliers and government work together" so that each side gets maximum benefit. It builds on an agreement first signed in November 1997.