Emtec Earns Contract to Provide IT Services to New York State Agencies
MT. LAUREL, N.J., Feb. 3 /PRNewswire-FirstCall/ -- Emtec, Inc. (OTC Bulletin Board: ETEC) announced today it has been awarded a backdrop contract (# CMS553A) from the New York State Office of General Services (OGS) to provide IT consulting and systems integration services to a variety of state government entities. Emtec, a leading IT services provider since 1981, is now among the approved solutions providers eligible to bid on IT-related service projects involving New York state, county and municipal agencies, as well as school districts. "We are pleased to have established this relationship, and we look forward to the opportunity to provide the various agencies with technology solutions that will help them serve the citizens of New York," said Joe Garofalo, Emtec Senior Vice President for Government and Education Sales. With the New York contract, Emtec continues to develop its solutions portfolio tailored for the government and education markets. A longtime provider of IT services to Fortune 1000 companies in New York, New Jersey, Connecticut, Pennsylvania, Delaware, Georgia and Florida, Emtec is also a leading source of technology solutions for government agencies and school districts in New Jersey. "The New York contract is great news for Emtec because it plays into our move toward the government and education markets," said Garofalo. "We have become the No. 1 provider of technology solutions for New Jersey, and New York will become a key component in our overall strategic plan." Making the Grade The contract represents the culmination of a lengthy application process during which Emtec had to demonstrate its technical expertise, past project performance, staffing capabilities and general reliability in all areas related to network consulting, design and integration. "We put together a team to pursue this several months ago," said Garofalo. "In New York State, we have traditionally focused on commercial business, but we wanted to increase our focus to also include government and education." Into the Pool Under the backdrop contract, Emtec joins a pool of qualified vendors who are eligible to participate in a secondary "mini-bid" process -- an abbreviated bid and selection process for individual agency projects. Projects often are awarded in as few as four weeks, resulting in a streamlined procurement process that saves the state money through limited requests for proposals and simplified contract administration. New York has used the backdrop contract system since 1953 to allow cities, towns, villages, counties and public schools to leverage the buying power of the statewide OGS to purchase materials, equipment and supplies at competitive prices. Fire districts, volunteer ambulance companies, libraries, private schools and colleges are also eligible to use OGS contracts. One of the great advantages to local governments using vendors on the backdrop contract is that they are relieved of the responsibility of handling bid solicitation and evaluation, as well as contract development and management. All of those administrative tasks are handled centrally by the OGS. E-government Opportunities Emtec's contract is a "pure services" contract, according to Garofalo, which means the company will focus on network consulting, design and integration projects rather than hardware or software sales. There is potentially a great demand for such services as more and more state, county and city agencies embark upon e-government initiatives. E-government is one of the fastest growing segments of the Internet marketplace. Legislative requirements and citizen demand are fueling the development of new programs and services designed to maximize government use of online resources. Government agencies are quickly moving from static, information-only Web sites to dynamic, interactive sites offering increased customer service. One way that government agencies are fast-tracking e-government initiatives is through the use of the Citrix solutions portfolio. Many agencies use Citrix products to provide a single Web-based point of access to their new and legacy key business applications, information delivered through Web forms and new Web-based applications. "We have a lot of expertise with Citrix and it's a good solution for many agencies," said Garofalo. "The other methodology would be to rewrite applications in a Web-based environment. If clients don't have the time, desire or the funds to do that, they can present many of their apps on the Web via Citrix without having to do rewrites. We're actually involved in quite a few substantial projects like that in New Jersey right now. So, with our Citrix expertise we can absolutely pursue e-government opportunities in New York." Information Sharing Emtec's expertise with database integration could also bear fruit under the New York contract. More and more government agencies want to have fully integrated databases and applications in order to provide maximum levels of service and accessibility to citizens. This means all applications being utilized by branches of the same governmental body should be able to seamlessly share and update data in real time. Without this ability, data is maintained in diverse systems requiring additional time, effort and human interaction to coordinate and update. The Office of Homeland Security has recently spurred an even bigger push toward the vision of a seamless, electronically integrated government. Database integration among the various federal, state and local law enforcement communities has become a high priority since the Sept. 11 terrorist attacks. Cross-agency information sharing among law enforcement, defense and intelligence agencies is a key provision of the Homeland Security Act of 2002. "The government is very aware of the fact that they have disparate databases in most of their justice systems," said Garofalo. "There are some major initiatives right now to integrate databases of justice systems so they can streamline their whole security and justice process. Police departments require the ability to share information with counties, state, municipalities and even the federal arena. Many are starting to move in that direction, and this contract could enable us to get involved in those opportunities." About Emtec Emtec, Inc., established in 1981, provides high-end computer systems and services to Fortune 1000 clients ranging in size from $50 million to $500 million in revenues. The Company specializes in evaluating and providing solutions for data management including Enterprise Management, Managed Services (monitoring/maintenance/helpdesk), and Data Management (storage and protection of data). With the recent acquisitions of Intellispan (Help Desk), Accentra (systems and services) and Turnkey Computer Systems (managed building services), Emtec has broadened its engineering and services capabilities. For additional information please contact Consulting For Strategic Growth 1, Ltd., at 800-625-2236. Certain statements in this document constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Emtec, Inc. ("the Company"), or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its plan of operations when needed; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission which are available for review at www.sec.gov under "Search for Company Filings." Consulting For Strategic Growth I, Ltd. ("CFSG") has a month-to-month relationship with Emtec, Inc. to provide consulting, business advisory, investor relations, public relations and corporate development services to the Company for fees to be determined. In connection with these services, CFSG prepares press releases, corporate profiles, and other publications on behalf of and regarding the Company. Independent of CFSG's receipt of cash compensation from Emtec, CFSG may choose to purchase the common stock of Emtec and thereafter liquidate those securities at any time it deems appropriate to do so. Contacts: Stanley Wunderlich Consulting For Strategic Growth 1, Ltd. Public Relations Corporate Development Consultants Tel: 800-625-2236 Fax: 212-697-0910 E-mail: firstname.lastname@example.org John Howlett Chief Executive Officer Emtec, Inc. Tel: 856-235-8787 Fax: 856-235-2932 E-mail: email@example.com Web site: www.emtecinc.com
SOURCE Emtec, Inc.
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