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CSC Wins British Military Payroll Contract

In a move that surprised some observers the British Ministry of Defence (MOD) awarded the contract to manage their payroll and personnel services to CSC (CSC). The current contract is being executed by Hewlett Packard (HP).

The seven year contract which will begin in late 2012 has an estimated value of almost $1.5 billion. HP has been executing this work since 1997.

CSC was one of two other bidders then HP who had attempted to win the contract alongside Capita.

The decision was somewhat a surprise due to CSC’s recent failure on a contract with the British National Health Service (NHS) for a patient administration IT system. The fallout from this contract is currently under negotiation between CSC and the NHS to reach a settlement. It was recently reported that these negotiations are ongoing and some sort of agreement will be reached by 1 June. CSC has said that they have had to write off their nearly $1.5 billion investment into the system.

The agreement will manage the reduction in CSC’s support and the use of the system.

Despite this past performance the British MOD has clearly stated that CSC submitted the best proposal and believe the contract was evaluated fairly and properly.

As the U.S. military has had the British military also experienced problems in the past paying personnel the right amounts due to the large movement to and number of troops in Afghanistan and Iraq.

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HP Strengthens Defense Segment Leadership — Press Release

HP Strengthens Defense Segment Leadership

PALO ALTO, Calif., March 07, 2011 – HP Enterprise Services today announced it has named U.S. Navy Vice Admiral (Ret.) H. Denby Starling II as vice president for command and control, Infrastructure Services. Starling will report to Doug Davis, vice president, HP Enterprise Services, U.S. Public Sector.

In this role, Starling will be responsible for the integration of command and control disciplines into the design and operation of the infrastructure services HP provides to the U.S. Department of Defense (DoD).

“Denby’s extensive experience with the U.S. Navy, including cyber and network-centric warfare, makes him an ideal leader for the command and control aspects of our DoD infrastructure services work,” said Doug Davis, vice president, HP Enterprise Services, U.S. Public Sector Department of Defense Market Segment. He will ensure that HP’s service and capabilities support and enhance the warfighter’s misson.”

Starling joins HP after retiring from more than 30 years of service in the U.S. Navy. Most recently, he served as Commander of Navy Cyber Forces and the Naval Network Warfare Command. In these positions, he was responsible for organizing and prioritizing manpower as well as training and modernization. He also managed maintenance requirements for networks and cryptologic, space, intelligence and information operations capabilities, as well as supervised the conduct of Navy network and space operations.

Throughout his career with the Navy, Starling earned designation as a naval flight officer and naval aviator. He was an attack pilot, commanding VA-145 in Operation Desert Storm and the nuclear aircraft carrier USS Dwight D. Eisenhower (CVN-69), USS George Washington Carrier Strike Group and Naval Air Forces Atlantic. His various staff positions included the Assistant Chief of Staff, Operations, Intelligence and Exercises for the Commander in Chief East Atlantic/Commander Allied Naval Forces, Northern Europe. He was commissioned through the University of Virginia NROTC program and is a graduate of the Naval War College.

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NASA Hires Hewlett Packard for IT Support

The U.S. Government has tried different ways to provide necessary IT support to its employees. One of its major goals has been the ability to keep up with technology with refreshing desk and lap top computers while also providing the necessary mobile technology. Attempts have been made to do it completely in-house. Other times the purchase of hardware and software has been separated from the actual management and support. A third way is to pay contractors over several years to manage everything with the idea that they will update technology routinely.

All of these different ways have their pros and cons as well as cost implications. Sometimes it means that too much of the wrong hardware and software is bought or not updated quickly enough. Some Federal agencies are looking at web based applications such as Google (GOOG) Apps or other equivalent packages with the idea it might save money. The National Aeronautics and Space Administration (NASA) has decided to hire Hewlett Packard (HP) to manage its IT needs for up to ten years.

The contract awarded to HP’s Enterprise Services unit could be worth up to $2.5 billion if all options are exercised. Enterprise Services is what EDS became after HP acquired them in 2008. EDS has a history of providing this type of support contract to various government agencies over the last few decades.

The contract has a four year base and two three year options. One of the goals of this contract and a justification for its length is that it will allow HP to provide multiple updates to the NASA computing base. The longer contract will also allow HP to control costs by allowing better coordination and purchasing of new equipment to replace existing stocks.

While these types of contracts are not uncommon they do face the problem of schedule delays in implementing updates and controlling costs. Virginia issued a vast contract to Northrop Grumman (NOC) to take over management and integration of all of their state government systems that has seen cost growth and schedule issues as well as attempts at re-negotiations.

That contract was much more complicated then HP’s with NASA as the state was trying to unify its IT systems as well as update equipment. The more standard type such as this is much less complicated but it does illustrate the size of that market if Federal agencies want to use this approach.

Photo from njt1982’s flickr photostream.

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HP Scores Big with Navy Network Transfer and Management Contract

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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HP Delivers Command and Control Capabilities to Bosnia and Herzegovina Ministry of Defense — Press Release

HP Delivers Command and Control Capabilities to Bosnia and Herzegovina Ministry of Defense

PALO ALTO, Calif., Dec. 14, 2009

HP Enterprise Services today announced it has completed the development and implementation of the Bosnia and Herzegovina Ministry of Defense’s (BiHMoD) operations and command system, known as BiHOCS, to support military organization and manage civil emergency response priorities.

The new system will enable the ministry to coordinate emergency and peace support operations by identifying, tracking and managing military resources.

The new Operations Center for Command and Control was funded by the U.S. State Department’s Foreign Military Financing account, which is intended to promote U.S. national security. The account provides grants for the acquisition of U.S. defense equipment, services as well as training to enable allies to improve their defense capabilities while fostering closer military relationships between the United States and recipient nations.

BiHOCS was part of a two-phase project under the U.S. Defense Information Systems Agency contract vehicle, ENCORE. As part of the contract, HP was responsible for the design, preparation, deployment, implementation, integration and sustainment of the operation and command system. During the implementation stage of BiHOCS, HP worked to deliver the network, collaboration applications, supporting infrastructure, end-user equipment and administrator trainings needed to deploy a successful center.

“The Operational Control System provides BiHMoD with the tools needed to effectively manage critical operations during emergency situations,” said Dennis Stolkey, senior vice president of U.S. Public Sector for HP Enterprise Services. “HP is proud to work with the U.S. government to provide Bosnia and Herzegovina with the resources to efficiently manage military functions while subsequently bringing the country closer to its goal of becoming a NATO member.”

The Operational Control System will provide the BiHMoD with a common operating strategy for increased collaboration to manage natural disasters by providing emergency services.

“The Operations Center for Command and Control is the first of its kind in Bosnia and Herzegovina,” said Dr. Selmo Cikotić, minister of defense of the Bosnia and Herzegovina Ministry of Defense.

The new center provides command and control over units of the armed forces tasked with crisis management, operations management for peace support and monitoring regular daily operations as well as activities within the defense institutions of Bosnia and Herzegovina.

HP Enterprise Services is the recently announced brand name for Electronic Data Systems, LLC.

About HP

HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. The world’s largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services and IT infrastructure to solve customer problems. More information about HP (NYSE: HPQ) is available at http://www.hp.com/.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to statements of the plans, strategies and objectives of management for future operations; any statements concerning expected development, performance or market share relating to products and services; any statements regarding anticipated operational and financial results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include macroeconomic and geopolitical trends and events; the execution and performance of contracts by HP and its customers, suppliers and partners; the achievement of expected operational and financial results; and other risks that are described in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2009 and HP’s other filings with the Securities and Exchange Commission, including but not limited to HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2008. HP assumes no obligation and does not intend to update these forward-looking statements.

© 2009 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP shall not be liable for technical or editorial errors or omissions contained herein.

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