Hewlett-Packard Company (HPQ) Signs $3.45 Billion Contract With The Navy

Posted Jun 28, 2013

Hewlett-Packard Company (NYSE:HPQ) has signed a deal with the U.S. Navy.  HP will be responsible for building the Navy’s Next Generation Enterprise Network (NGEN).  The deal for HP Enterprise Services is worth $3.45 billion over five years.  The Navy has been wanting to upgrade and replace their Intranet for a long time now.  HP will be managing the network transport services and enterprise computing services for 400,000 seats and 800,000 users.

The Navy is expected to save over $1 billion over five years.  The Navy is going to own the network and the hardware such as the mobile devices involved.  Companies bid on various segments of the NGEN request proposal.  HP beat out Computer Sciences Corp. and Harris Corp. for the bid.

The Navy’s contract with the HP Enterprise Services includes services that are provided by AT&T Government Solutions, IBM Global Business Services Federal, Lockheed Martin Services and Northrop Grumman Systems.

“HP and its team of world-class partners recognize the importance of keeping the Navy’s backbone IT network secure, operational and moving forward for sailors and Marines to support their operations,” said HP CEO Meg Whitman.

HP has been running the Navy’s network for 2008.  The Navy is the company’s largest federal contract.  It accounts for nearly 40% of their $2.6 billion in prime (direct) contracts for the year ended September 30th, according to Bloomberg.