EL SEGUNDO, Calif., Nov. 3 – Computer Sciences Corporation (NYSE: CSC) announced today that it has been awarded a contract by the Federal Emergency Management Agency (FEMA), a branch of the Department of Homeland Security, to continue supporting the U.S. federal government's National Flood Insurance Program (NFIP). CSC estimates the value of the contract, which has a three-month base period and two one-year options, to be approximately $35 million if all options are exercised.
This new agreement follows and is incremental to a contract signed with FEMA in 1999 under which CSC provides training, consultation and analytical support services.
As the NFIP's bureau and statistical agent, CSC will continue to serve as the liaison between the government and more than 90 independent property and casualty insurance companies that issue federally guaranteed NFIP policies. CSC will provide the government with actuarial, financial and statistical analyses, and deliver flood-related training, consultation, support materials and information clearinghouse services. The company processed more than $2 billion in flood insurance transactions for the NFIP last year.
“We have witnessed the most active and costly hurricane season in our nation’s history this year, and CSC has supported FEMA and the NFIP during the national disaster-response efforts,” said Marcia Kim, vice president of CSC’s Citizen Services organization. “CSC has worked with the NFIP since 1983, and our selection to continue support for this crucial program demonstrates FEMA’s confidence in our experience and ability to deliver sound results.”
Congress established the NFIP in 1968 to reduce the cost of federal disaster relief payments after major floods. The program employs a successful two-part strategy by offering affordable flood insurance to homeowners, renters and business owners in participating communities who must adopt and enforce sound flood plain management practices to reduce future flood damage.
Today, 4.6 million NFIP policies are in effect in nearly 20,000 participating communities throughout the United States, Puerto Rico, the Virgin Islands and Guam. Flood damage is reduced by nearly $1 billion a year through partnerships with communities, the insurance industry and the lending industry. Further, buildings constructed in compliance with NFIP building standards suffer approximately 80 percent less damage annually than those not built in compliance.
About CSCFounded in 1959, Computer Sciences Corporation is a leading global information technology (IT) services company. CSC’s mission is to provide customers in industry and government with solutions crafted to meet their specific challenges and enable them to profit from the advanced use of technology.
With approximately 78,000 employees, CSC provides innovative solutions for customers around the world by applying leading technologies and CSC’s own advanced capabilities. These include systems design and integration; IT and business process outsourcing; applications software development; Web and application hosting; and management consulting. Headquartered in El Segundo, Calif., CSC reported revenue of $14.3 billion for the 12 months ended July 1, 2005. For more information, visit the company’s Web site at
www.csc.com.
