CSC awarded $34M U.S. Army contract modification The United States Army has awarded CSC a firm fixed price contract modification to upgrade a simulator-based flight and related aviation training device for the U.S. Army Aviation Center of Excellence at Ft. Rucker, Ala. Awarded in CSC's 2Q13, the contract modification has a six-month base period and ten one-year options, for a total value of $34M. The contract modifications were awarded under the Flight School XXI indefinite-delivery requirements contract, which CSC won in 2003.
CSC legal risks increased with new lawsuit, says Wells Fargo Wells Fargo sees increased legal risks for CSC after the United States Attorney for the Southern District of New York sued the company and the City of New York for Medicaid fraud. Given the legal uncertainty, Wells expects CSC to continue to maintain a "relatively sizable" cash position on the balance sheet for the "foreseeable future." It keeps a Market Perform rating on the stock.