With Y2K Bug Dead, CSC on Winning Streak.

Computer Sciences Corp., the No. 3 computer services company in the country, is on a roll after a lull caused by Y2K worries.

In the last five months, the El Segundo-based company has won $7.8 billion in contracts for technology support services to private and government entities. And that windfall could quickly double -- it' is one of several bidders for a U.S. Navy/U.S. Marine Corps job worth from $7 billion to $9 billion.

CSC is one of several major information technology companies throughout the country that are suddenly seeing a spate of new business. Many government agencies and large corporations held off on awarding contracts last year because they were busy getting their systems Y2K compliant and didn't want to take on any new projects until that process was complete. Now they're making up for lost time.

"A 11 these services companies are rolling right now, like IBM and EDS (Electronic Data Systems). I project they will be rolling for some time," said Gary Helmig, an analyst with SoundView Financial Group. "More companies and the government are going to be turning to the big companies to get the job done... A recent government study shows that 50 percent of the information technology professionals in the federal government will be retiring in the next five years."

In August alone, Computer Sciences has won $3.35 billion in contracts. Last week it received a $352 million, five-year contract from the U.S. Air Force to provide information technology services for Lackland Air Force Base in San Antonio, Texas. The contract also calls for CSC to provide communications, engineering and utilities management services for the air base. Computer Sciences Defense Groups based in Falls Church, Va., will perform the work.

This contract comes on the heels of a $3 billion contract won by CSC to provide technology support services to Nortel Networks for seven years. Nortel is the world's second-largest telecommunications equipment supplier. The contract was one of the largest deals ever in the technology consulting industry.

Computer Sciences, which has 60,000 employees around the world, will provide technology support for the 75,000 desktop computers flint Nortel employees use in 19 countries. CSC will also provide help-line support, computer infrastructure management, legacy application development, and support and data center management.

Wall Street has reacted favorably to CSC's recent contract victories. The company's stock closed at $74.19 a share on Aug. 23 on the New York Stock Exchange, up dramatically from its 52-week low of $57.93 last October.