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HP unit wins Navy contract worth up to $3.4B

Written on July 11, 2010

Hewlett-Packard Co.'s HP Enterprise Services has signed a Continuity of Services Contract with the U.S. Department of the Navy worth more than $3.4 billion if all options are exercised, HP has announced.

The initial award to the unit, which is based in Herndon, Va., is $27 million, the Department of Defense said in its online contract digest.

The work is on the Navy-Marine Corps Intranet, which provides IT support for more than 700,000 sailors, marines and civilians in the continental United States, Hawaii and Japan.

The initial job will be performed in Herndon, Va., and should be completed by Sept. 30.

Further work could continue through 2015 if all options are exercised, at some 2,500 locations including bases, camps, posts, stations, offices and single-seat storefronts in the contiguous United States, Alaska, Hawaii, Japan, Guantanamo Bay (Cuba), and Puerto Rico.

This contract was not competitively procured, as HP Enterprise Services is the owner-operator of the Navy-Marine Corps Intranet and is the only source that can satisfy the Navy’s requirement for continuity of IT services, the DOD said pay day advance.

“The Department of the Navy needs to provide uninterrupted service to users while the Navy and Marine Corps execute a transition of one of the world’s largest and most secure defense network environments,” Dennis Stolkey, senior vice president for the public sector, HP Enterprise Services, said in a statement. “With the NMCI contract ending on Sept. 30, 2010, the Navy and HP have signed the CoSC to continue many of the IT services while enabling the Navy and Marine Corps to transition services to NGEN.”

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