COMPETITOR ANALYSIS - Rates

The following report is an exemplar delivery for a competitor Wrap Rate.

Company: Cost Center: Fiscal Year: Industry Sector:

TRW, Inc. Information Services Rates change 12/31 Professional/Technical Services

Plant Rate Multiple (Contractor Plant): Site Rate Multiple (Government Site):

Competitive Posture: Formerly TRW Information Systems Div., Information Services specializes in program mgmt, enterprise & system engineering, and information systems. Its principal customers include DoD, NIH, IRS, and Treasury. Corporate TRW is still experiencing a difficult time with debt reduction a principal priority and declining sales, which has made it vulnerable to a takeover bid by Northrop Grumman. Information Services prime contract awards have been declining generally, with HHS contracts declining by some 25% over the past two years, all of which puts rates under pressure. However, a shift of emphasis from systems engineering and R&D into lower cost O&M activities such as outsourcing and enterprise business solutions has caused rates to fall relative to 2001.

Rate Multiple: The multiple of overhead, fringe, and G&A rates, without regard to fee. For companies, groups or divisions representing multiple cost centers, the rates reflected herein represent composites. Sources: The methodology employed is proprietary to ARDAK Corporation. All input data is unclassified, nonproprietary public domain information. Sector Size: Sector averages are based on 101 companies/divisions analyzed in the past year. Of these, TRW ranks #27 in plant rates (26 less expensive) and #11 in site rates. Rates Trend: Stable. Performance trend suggests rate are stable or trending downward. Confidence Level: Moderate. This derivation is within the historic range. It is based on analysis of adequate data. Accuracy assessed as plus/minus 3%.