RESTON, Va., June 25, 2004 (PRIMEZONE) -- The U.S. Department of Health and Human Services and U.S. Department of Transportation have selected Northrop Grumman Corporation (NYSE:NOC) to provide online travel management services to their agencies. The contracts are expected to exceed $90 million over 10 years.
Northrop Grumman's GovTrip service has now been selected by the first three agencies to name an eTravel Service (eTS) provider. The Treasury Department chose GovTrip earlier this month.
The Departments of Health and Human Services, Transportation and Treasury account for more than 20 percent of federal agency travel volume.
The U.S. General Services Administration (GSA), which manages the government-wide program, expects eTS to save taxpayers up to 50 percent in federal travel management costs over 10 years. By year's end, 24 agencies will select an eTS provider.
The Department of Health and Human Services awarded Northrop Grumman's Mission Systems sector a firm, fixed-price indefinite delivery, indefinite quantity task order on June 16. Department travelers file approximately 235,000 travel vouchers (expense reports) each year.
"Representatives from throughout Health and Human Services evaluated not only GovTrip's usability but also its ability to support the unique travel requirements of some the department's organizations," said Leo Hergenroeder, Northrop Grumman's eTS program manager. "We will work closely with the Program Support Center at HHS to implement GovTrip throughout the department over the next two years."
Health and Human Services estimates GovTrip will result in savings of $35 million over 10 years.
The Transportation Department task-order contract was awarded June 17. Transportation travelers file approximately 250,000 travel vouchers each year.
The Transportation Department evaluated the three competing vendor services side-by-side for several months during initial operating capability testing at the Federal Aviation Administration office in Oklahoma City. The GSA certified GovTrip in May, based on tests conducted at the Federal Aviation Administration and in Washington.
"During testing, the Transportation Department gained extensive experience with all three eTS services, so we are particularly pleased by its GovTrip selection," said Hergenroeder.
Northrop Grumman and Transportation Department officials have completed the interface between GovTrip and the department's Oracle financial system and expect to complete agency-wide GovTrip implementation in 14 months. Transportation estimates the eTravel service will save the department $40 million over 10 years.
GovTrip supports the entire government travel process, which includes planning and authorizing travel, making reservations, delivering electronic tickets, calculating and approving reimbursements, and archiving data. GovTrip increases the number of self-service transactions, reducing agency travel-management costs.
The GovTrip team includes American Express, the world's largest travel agency, which will provide reservation and fulfillment services. Integrated Data Corporation, Analytical Services Incorporated and Bruin Wave Solutions LLC provide information technology services and other support as subcontractors on the Northrop Grumman team.
Additional information about GovTrip is available at www.GovTrip.com.
eTravel is one of five E-Government initiatives managed by the GSA. The E-Government initiatives are designed to improve the effectiveness and efficiency of the federal government through the use of technology and are an integral part of President George W. Bush's management agenda.
Northrop Grumman Mission Systems, based in Reston, Va., is a global integrator of complex, mission-enabling systems and services for defense, intelligence and civil government markets. The sector's technology leadership and expertise spans areas such as strategic systems, including intercontinental ballistic missiles; missile defense; intelligence, surveillance, and reconnaissance; command and control; technical services; and training.
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