Harris Wins Contract – Analyst Blog

Harris Corporation (HRS) has won an eight-month $10.9 million contract from the Department of Veterans Affairs (VA) to enable a smooth transition of Veterans Health Administration (VHA) to the electronic health care transaction process. VA is one of the largest health care delivery organizations in the world with 21 networks and 170 medical centers nationwide.

 

Under the terms of the contract, Harris’ prime focus will be to provide Veterans Health Administration with software development services, which will include, among others, software design, test and deployment and requirement of definition and documentation. The company’s efforts will help VHA upgrade from Health Insurance Portability and Accountability Act (HIPAA) 4010 to HIPAA 5010.

 

Harris has been strengthening its business with VA since its acquisition of Patriot Technologies, a leading provider of health care IT, imaging and enterprise software solutions for VA, in November 2009. Earlier, in the third quarter, the company had won a three-year $72 million contract to improvise VA’s complex billing and collection activities.

 

Harris Corporation is a global provider of communication equipment and services for government and commercial customers with a footprint in more than 150 countries. Harris has a strong market share in broadcasting equipment, high-frequency and multi-band “man-pack” tactical radios, and ground-based military satellite communications terminals. The company provides secure enterprise intelligence solutions and services for government and commercial customers.

 

Harris operates in a highly competitive communication equipment industry and faces intense competition from Boeing Co. (BA), General Dynamics Corp. (GD) and Raytheon Co. (RTN). We maintain our current recommendation of Neutral for Harris.