Texas awarded NIC a seven-year contract to operate the state's multi-billion dollar TexasOnline Web portal on Friday, capping a 17-month procurement process.

The Kansas-based portal company already had operated TexasOnline since May, acquiring management of the site from original contractor BearingPoint, which filed for bankruptcy protection in February. Texas officials said the new contract will generate millions of dollars in new revenue and allow the state to focus on transformational Web initiatives.

"We're very excited about what this does for the state of Texas and the citizens of Texas," said Doug Holt, division director for e-government and IT policy for the Texas Department of Information Resources.

More Revenue

Launched in 2000, TexasOnline is self-funded. The costs of managing the Web site and developing new features are covered by transaction fees attached to electronic services provided by the portal.

The new contract, which begins immediately, is expected to generate more than $183 million in revenue to the state's general fund over its seven-year term, Holt said. By comparison, the old contract is projected to deliver about $61 million by the time it expires on Dec. 31. The contracts will overlap until the old one expires, allowing NIC time to transition from the old to new contract provisions, Holt said.

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