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HP Scores Big with Navy Network Transfer and Management Contract

by: Matthew Potter
July 19, 2010

Category: Business Line, Companies, Contract Awards, Department of Defense, development program, Events, Federal Budget Process, Hewlett Packard, IT, Services, U.S. Navy | RSS 2.0

The United States Defense Department is a large, complex organization that employs a lot of people and spends a great deal of money. It has two primary functions: to prepare the Armed Services for fighting and to fight. This means that it buys a lot of things that a traditional company would although this sometimes surprises people.

Hewlett Packard (HP) recently was awarded a “Continuity of Services Contract (CoSC) by the U.S. Navy to provide IT enterprise services. This means that rather then conduct a new competition to find a supplier the Navy was able to sole source the deal by just continuing the existing contract with HP. The Navy must be happy with the level of support that HP is providing and felt justified in not going through a competitive round to maintain these services. One major argument for this move is that the Navy is in the process of transferring to a new network, the Next Generation Enterprise Network (NGEN), and this contract action allows that work continue without any delay due to transferring the work to another contract.

Like any large organization the Navy and other parts of DoD need good networks that allow reliable transfer of data and communications. They may have a few more security requirements that include both physical and network but the general work is no different then others.

One difference is the size of the deal. The initial piece of this new contract is only for about $30 million the total contract could be worth up to $3 billion. Any deal like that is nothing for a company to sneeze at and the work is certainly welcome in this time of struggling economy.

Photo from skuds flickr photostream.

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  1. Tweets that mention HP Scores Big with Navy Network Transfer and Management Contract | Defense Procurement News -- Topsy.com on July 19th, 2010 2:45 am

    […] This post was mentioned on Twitter by Dagpotter, DefProcureNews. DefProcureNews said: HP Scores Big with Navy Network Transfer and Management Contract: The United States Defense Department is a large,… http://bit.ly/d7Suwy […]

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