DEC Wins $1.5-Billion Veterans Contract

Digital Equipment Corp. said it won a five-year contract to supply computer software and hardware to the Department of Veterans Affairs that could be worth as much as $1.5 billion. Maynard, Mass.-based Digital will outfit the VA and other federal agencies with personal computers powered by microprocessors from Intel Corp., DEC spokesman Dan Kaferle said. The fixed-price contract is for one year, with four one-year renewal options, Kaferle said. The VA allocation over the five years is $988 million, with $494 million set aside for other civilian and defense agencies, he said. The contract comes as the world’s third-largest computer company struggles to return to profitability after losing money in five of the last six fiscal years. DEC shares rose 50 cents to close at $35 on the New York Stock Exchange.