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AT&T Wins Huge NSA Computer Order The Associated Press June 28, 1985, Friday, PM cycle

3 of 45 DOCUMENTS
Copyright 1985 Associated Press
All Rights Reserved
The Associated Press
June 28, 1985, Friday, PM cycle
SECTION: Business News
LENGTH: 491 words
HEADLINE: AT&T Wins Huge NSA Computer Order
BYLINE: By NORMAN BLACK, AP Military Writer
DATELINE: WASHINGTON
BODY:
American Telephone & Telegraph Co., which jumped into the crowded computer field only last year, has won a
major contract from the National Security Agency that ultimately could be worth as much as $946 million.
Under the contract, disclosed Thursday by AT&T and confirmed today by the Defense Department, the giant
communications organization would provide as many as 250 of its new 3B line of super mini-computers to the NSA, the
largest and most secret of the nation's intelligence agencies.
Neither AT&T nor NSA would disclose how the new computers would be used. An NSA spokesman, Mike Levin,
would say only that the machines were for a "new purpose" and would involve "many units, spread out over a number
of places."
The NSA recently was assigned responsibility for computer security within the government.
AT&T said it will get the full $946 million only if the agency exercises all the options in the new contract, which
extends through 1988.
In winning the job, AT&T beat out a host of major computer makers, including International Business Machines
Corp., Gould Inc. and Digital Equipment Corp.
"This is a very large procurement which we worked very hard on for more than a year," said Warren Corgan, the
vice president in charge of AT&T's Federal Systems Division.
"The customer is a sophisticated user of computers, and it is very gratifying to have him choose us over the other
major suppliers. We intend to demonstrate to him that his confidence in us was deserved."
AT&T said the project will be managed by its Federal Systems Division, headquartered at Greensboro, N.C. A field
office will be set up in the Washington, D.C., area to provide on-site support, the company said. The 3B computers will
be manufactured at AT&T's Oklahoma City works.
AT&T unveiled its line of 3B computers last summer as one of its major initiatives following the breakup of the
Bell System. Industry analysts described the sale as the largest yet for AT&T and one that would likely bolster the
company's marketing efforts.
"If they got a $1 billion contract, AT&T is a major computer vendor," said Jean Yates, the vice president of the
International Data Corp., a consulting firm.

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AT&T Wins Huge NSA Computer Order The Associated Press June 28, 1985, Friday, PM cycle

Apart from the size of the equipment order, the contract is expected to assist AT&T's efforts to make its Unix
System V software operating system an industry standard. The Unix System V was introduced commercially in January
1983 and manages the basic functions of a computer system.
Beyond AT&T and its former Bell System companies, computers tied together with the Unix system have long been
popular in universities and some government agencies. Most of AT&T's government business, however, has been in the
area of telecommunications services and not computer systems.
AT&T won the right to enter the retail computer business under a consent decree with the Department of Justice
that forced it to spin off its local telephone operating units.