USDA IS AWARDED INFORMATION TECHNOLOGY CONTRACT FOR FAA  

                                            Release No. 0158.97

                                    Tom Amontree (202) 720-4623
                                          tom.amontree@usda.gov
                                  Martha Cashion (202) 720-3310
                                        martha.cashion@usda.gov


USDA IS AWARDED INFORMATION TECHNOLOGY CONTRACT FOR FAA  

     WASHINGTON, May 13, 1997--Agriculture Secretary Dan Glickman today
announced that the U.S. Department of Agriculture's National Information
Technology Center in Kansas City, Mo., has been awarded a contract worth up
to $250 million to provide information technology services for the Federal
Aviation Administration.

     "NITC was competing with both private and public sector organizations
to win this contract," Glickman said.  "I am proud that USDA can hold its own
with the best in the business as we seek to franchise our services.  We
developed a solid business case which not only will serve FAA well, but will
have the effect of lowering overall costs for other users of NITC."

     Under the contract, known as the Integrated Computing Environment --
Mainframe and Network (ICE-MAN), NITC will establish a system that combines
the center's expertise in information management technology with hardware,
software, and technical support services to support the FAA's administrative
information systems.  The contract includes a three-year base period with a
minimum of $1 million and five one-year options worth up to $249 million.
The contract was signed on May 13 and processing services are expected to
begin in September 1997.

     The NITC is part of USDA's Office of the Chief Information Officer and
is the product of fifteen years of consolidation of USDA mainframe
operations in one geographic location and organization.  "USDA experienced
considerable economy of scale through such consolidation," said Anne F.
Thomson Reed, acting chief information officer for USDA.  "By franchising its
expertise to the FAA, NITC expects to realize lower costs for its customers." 
The FAA will be NITC's largest customer, generating approximately 30 percent
of total revenues.

     Organizations interested in knowing more about NITC's capabilities and
services can contact Bill Johnson at 816-926-2194 for additional
information.

                                
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