The Department of Defense issued just over $1.5 billion worth of new contracts Monday. A little more than $600 million of this amount was for bulk orders of fuel, placed with small, privately held companies. The single largest award of all, though, for $679.8 million, went to pay for work on the Navy Marine Corps Intranet -- and Hewlett-Packard (NYSE:HPQ) won it.
Monday's award -- a modification to a previously awarded continuity of services contract -- increases the total value of the underlying contract to $5.6 billion and contains an option to extend the contract by a further two months, through June 2014. Through this contract, H-P is hired to ensure that Navy Marine Corps Intranet continues to function and connect 2,500 Navy and Marine Corps locations worldwide, until a Next Generation Enterprise Network is up and running, "satisfactorily providing the replacement services."
This contract includes three primary endpoints, with H-P's continuity of services work running through April 2014 (or June 2014, with the optional extension), "asset usage services" running through December 2014, and hardware purchases running through July 2015.