Compuware to Appeal Detroit Public Schools Board of Education IT Contract Decision

Detroit-based Compuware Delivered DPS $4 Million in Savings, $3.5 Million in Pro Bono Services While Keeping Jobs in Detroit

::	Detroit Public Schools Success Story [PDF, 601KB]
::	Photo of DPS infrastructure before Compuware
::	Photo of DPS infrastructure with Compuware running the district's IT
::	Photo of DPS Data Center as designed and implemented by Compuware

DETROIT--July 31, 2006--Compuware Corporation (NASDAQ: CPWR) today announced that it would appeal the recent decision by the Detroit Public Schools (DPS) Board of Education to award its IT services contract to a number of smaller and less experienced firms. Since 2001, Compuware has saved the school district more than $4 million, while keeping all of the important and lucrative technology jobs that serve DPS in the city of Detroit.

Compuware also provided DPS more than $3.5 million in pro bono services, including a massive inventory of IT equipment, modern Data Center design and hundreds of thousands of dollars in unbilled overtime. By choosing less established and less financially stable vendors, the District will now have to cover these costs while incurring millions of additional dollars in transition expenses.

"Given the vast improvements in technology and the reductions in expense that Compuware delivered to the school system, I’m shocked that the Board awarded this contract to a patchwork group of less capable vendors that may move jobs out of the state to meet their obligations," said Peter Karmanos, Jr., Compuware Chairman and Chief Executive Officer. "Compuware’s commitment to bringing jobs to, and keeping employees in, the city of Detroit and to putting technology at the service of DPS students, teachers and administrators is unquestioned. On the merits, I have no doubt that Compuware earned a contract extension."

A District in Need

Prior to the DPS-Compuware partnership, the District’s technology operations—including its vital Data Center—were in disarray. Ineffective technology investments resulted in an inability to process payroll, while inadequate purchasing controls either over- or underpaid vendors. Unable to enjoy the business benefits of its technology investments, the District also suffered from an inability to pass the power of technology investment along to its students and teachers. Network access was limited, and response to questions at the help desk was poor. Amazingly, very few teachers had e-mail.

Turning the Tide With Compuware

In August of 2000, the District signed a partnership agreement with Compuware Corporation to support critical areas such as human resources, finance and budget, network infrastructure and more. Since the agreement was formalized in March of 2001, Compuware has delivered tangible results that have improved not only the business operations of the District but also—and more importantly—have increased the ability of students, teachers and administrators to enjoy the benefits of a world-class technology system.

Compuware and DPS produced these results while reaching a 37 percent subcontractor participation rate from minority- and women-owned businesses, a nearly 50 percent increase from the previous rate. Compuware has retained 97 percent of former DPS technology staff.

Others recognize the success of the Compuware-DPS partnership as well. The Everest Group and Outsourcing Center honored the relationship between Compuware and DPS with its 2003 Editor’s Choice award. In September of 2004, PeopleSoft selected DPS the winner for its Leader in Supply Management award, honoring the District’s achievements in streamlining and expediting the ordering process, dramatically driving down the cost of supplies.

A Partner for DPS and for Detroit

During the term of its contract with DPS, Compuware made its commitment to the city of Detroit clear by relocating its corporate headquarters from suburban Farmington Hills to Detroit’s Central Business District, a $400 million project that achieved a nearly 40 percent minority contractor participation rate. Compuware also partners with various Detroit public schools and institutions to offer Detroit high-school students and graduates high-tech internships and job opportunities. The company additionally provides special $2,000 scholarships to graduates of its Cass Tech internship program, a more than 12-year old program that offers technology and workplace training to Cass Tech students. "Compuware did all of the right things in its partnership with DPS," said Karmanos. "I’m hopeful that the District’s leaders will take this opportunity to do the right thing themselves."

Media Kit

A media kit including photos and documents that highlight Compuware’s accomplishments at DPS is available here.

Compuware Corporation

Compuware Corporation (NASDAQ: CPWR) maximizes the value IT brings to the business by helping CIOs more effectively manage the business of IT. Compuware solutions accelerate the development, improve the quality and enhance the performance of critical business systems while enabling CIOs to align and govern the entire IT portfolio, increasing efficiency, cost control and employee productivity throughout the IT organization. Founded in 1973, Compuware serves the world’s leading IT organizations, including more than 90 percent of the Fortune 100 companies. Learn more about Compuware at http://www.compuware.com/