Hewlett-Packard Wins Second Pentagon IT Contract This Week

For the second time this week, Hewlett-Packard (NYSE: HPQ  ) has booked a major, multimillion-dollar contract win with the U.S. military.

On Monday, Hewlett won a $600 million IT contract from the U.S. Marine Corps to continue upgrades on that service's Intranet. On Thursday, the Department of Defense awarded Hewlett's Enterprise Services division a separate, but related, $321.7 million contract for work on the Next Generation Enterprise Network (NGEN).

As the DoD contract announcement explains: "The Department of the Navy operates one of the largest intranets in the world, which is the Navy Marine Corps Intranet (NMCI). NGEN is the acquisition approach designed to provide network services originally consolidated in 2000 under NMCI. NMCI currently delivers end-to-end, secure information technology services to more than 400,000 seats and 800,000 users."

Hewlett's task under this latest contract is to transition NMCI into NGEN -- a project now valued at $3.45 billion in total, including Thursday's award, and optional extensions thereof. The company won't be doing the work alone. Its NGEN team includes partners AT&T, IBM, Lockheed Martin, and Northrop Grumman.

The base NGEN contract is for one year, but contains the possibility of four one-year extensions. Assuming all four options are exercised, Hewlett and its partners could be kept on this task through June 2018. 


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  • Report this Comment On June 28, 2013, at 1:27 PM, svennie89 wrote:

    And they lose two bids in Germany with around 1 Billion based on the decision to close largets Enterprise Services location in Ruesselsheim and firing all thousand people. Since the announcement on February HP Germany is not providing same quality of service anymore. Now the first big loses based on the unsocial decision shows that HP is on the wrong way.

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