HP Lands $3.5 Billion Navy Contract

The following appears on biz journals.com

The Navy awarded its much anticipated $3.5 billion contract to replace its computer network to Hewlett Packard Co. Thursday, leaving losing bidder Computer Sciences Corp. to “evaluate our options,” presumably in terms of a possible protest, until after a debrief by the Navy.

Hewlett Packard Enterprise Services in Herndon, with partners IBM, AT&T Inc., Lockheed Martin Corp. and Northrop Grumman Corp., won the Next Generation Enterprise Network contract to provide information technology services for 800,000 users at the Navy. The initial one-year contract is for $321.7 million, with options that would bring the total value over five years to $3.45 billion.

HP holds the current Navy Marine Corps Intranet contract, or NMCI, which NGEN will replace.

“NMCI was the first time that DOD hired a private company to build and manage and maintain its entire IT intranet and infrastructure including software,” said Vic Gavin, program executive office for enterprise information system at the Navy. “NGEN in my mind is just as significant. It is an inclusive, innovative and exemplary acquisition approach. We came up with the strategy by involving lots of the stakeholders to include at the table. We reached out to industry. We’ve had over two thousand inputs into our source selection process to get us to where we are today that we’ve adjudicated.”

The contract will achieve more than $1 billion of savings for the Navy, officials said. Work will be performed at nearly 2,500 Navy and Marine Corps locations worldwide, from major bases to single-user sites.

The other bidding team was led by CSC and Harris Corp., and included General Dynamics Corp., Verizon Communications Inc. and Dell Inc.

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