Super Mini-computer Program Contract Does a Billion Dollars in Delivery Orders; 45 Agencies Benefit From Unique Government/Industry Partnership.

Business Editors & Defense Writers

MCLEAN, Va.--(BUSINESS WIRE)--May 12, 2000

PRC Inc., a subsidiary of Litton Industries (NYSE:LIT), today announced that $1 billion worth of products and services have passed through the Super Mini-computer Program (SMP) indefinite-delivery/indefinite-quantity (IDIQ) contract since its start date in 1993.

The Space and Naval Warfare Systems Command (SPAWAR) manages this contract.

"It is unusual for any contract, especially an IDIQ contract, to be successful for this length of time," Lou Kirby, Litton PRC's vice president and general manager of the SMP program, pointed out.

"Its success can probably be tied to a conversation in late 1992 between Lt. Col. David Nicholson of CECOM, in Fort Monmouth, N.J.; Virginia Weidler of NAVICP Naval Inventory Control Point, in Mechanicsburg, Pa.; and Litton PRC management. This conversation centered on creating ideas that would ensure this contract could be a success.

"Lt. Col. Nicholson, Ms. Weidler and Litton PRC decided that the program management approach should include a strong partnership between the government and the contractor," continued Kirby, "to ensure SMP would be a vehicle that could withstand the test of time."

Through this structure, he continued, the partners would jointly manage the contract on a day-to-day basis so conflicts could be resolved at the earliest time and at the lowest levels in the two organizations. Quality training, programs and processes became mandatory components of the program management approach, and were reviewed and directed by a joint council of government and Litton PRC personnel.

"This unique government-industry partnership approach and the close working relationship of the joint management team was responsible for the quick resolution of issues. This approach also added unprecedented flexibility to the IDIQ, enabling technical refreshment 68 times and the adoption of new procurement approaches to respond to changing technology and market conditions," said Kirby.

He further pointed out that as a result of this unique management structure, Litton PRC won the U.S. Senate's Productivity Award in 1997.

"More importantly," he said, "some 45 different agencies have benefited. Agencies have been able to purchase the products and services needed in amounts ranging from a few hundred dollars for individual products to millions of dollars for complete program or enterprise-level solutions.

"The spectrum of Litton PRC solutions under SMP ranges from simple departmental server applications to complex integration and enterprise solutions often requiring special services and deployment to multiple locations worldwide over an extended period of time."

The Army proved to be the largest beneficiary of this IDIQ, Kirby pointed out, through facilitated acquisitions of hardware, software and services to support major programs deployed worldwide across a broad spectrum of mission objectives.

Examples of these included document conversion systems for the Criminal Investigative Division, with headquarters at Fort Belvoir, Va.; logistics support systems for the Material and Traffic Management Command, based in Falls Church, Va.; network monitoring systems for the Pentagon Renovation Program; the modernization of personnel management systems for the Civilian Personnel Management System of Alexandria, Va.; deployable systems for supply personnel in the Corps/Theater ADP Service Center at Fort Bragg, N.C.; and logistics management systems for the Standard Army Ammunition System at Fort Lee, Va.

"Litton PRC's proven success rate of 6,500 implementations has strengthened our partnership with SPAWAR for the past seven years. Given the proliferation of choices available to federal government customers and the intensifying competition for their business, we are especially proud that we have been able partners with SPAWAR to provide defense and civilian agencies with great products and services for so long, and look forward to continuing to do so until May 2002," said Leonard M. Pomata, Litton vice president and president of PRC.

Litton PRC is a leading provider of scientific, engineering and information-technology-based solutions for public-sector clients. Litton PRC is one of the divisions that make up Litton's Information Systems Group (ISG). Litton ISG, with headquarters in Woodland Hills, Calif., employs more than 9,200 in 150 offices nationwide and is ranked as one of the federal government's top 10 contractors.

More information can be found at Litton PRC's Web site at www.littonprc.com.

Litton is one of the nation's leading shipbuilders for the U.S. Navy and the largest builder of non-nuclear ships. Litton designs, builds and overhauls surface ships for government and commercial customers worldwide. The company is a leading information-technology (IT) contractor to the U.S. government and provides specialized IT services to commercial customers and government customers in local/foreign jurisdictions.

Litton provides defense and commercial electronics technology, components and materials for customers worldwide. With headquarters in Woodland Hills, Calif., the company has more than 40,000 employees and is expected to have more than $5.5 billion in revenue.

For more information, visit Litton's Web site at www.litton.com.