Accenture Wins Huge IT Contract

Updated from 12:48 p.m. EDT

Accenture(ACN Quote) was awarded one of the largest federal technology contracts in history Tuesday by the Department of Homeland Security, beating rivals Lockheed Martin(LMT Quote) and Computer Sciences(CSC Quote).

Shares of Accenture were recently up 73 cents, or 3%, to $25.34. Lockheed Martin shares were down 40 cents, or 0.8%, at $49.14, and shares of Computer Sciences were down 54 cents, or 1.2%, at $43.05.

Subcontractors on the Accenture bid include Dell(DELL Quote), AT&T (T Quote) and Raytheon (RTN Quote); despite the news, shares of all three were recently down.

The huge contract calls for building a complicated system of databases and identification devices to monitor visitors crossing U.S. borders. Known as the United States Visitor and Immigrant Status Indicator Technology program, or US-Visit, the contract will augment the billions already spent by the fledgling government agency to beef up security in such fields as air travel.

The contract, which also encompasses seaport security, is worth up to $10 billion over five years with five one-year options after that, according to the agency. A General Accounting Office report has projected the contract's cost would likely go higher, and it was rumored to have been worth $15 billion before Tuesday's announcement.