HP Lands $2.5 Billion IT Products and Services Contract with NASA

Vendor bests Lockheed Martin in competitive bidding to supply IT products and services to NASA Shared Services Center. Award marks fourth outsourcing services win in last month.

December 28, 2010

D.H. Kass

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Hewlett-Packard Co.’s Enterprise Services has landed a $2.5 billion contract to supply the National Aeronautics and Space Administration’s (NASA) Shared Services Center (NSSC) in Mississippi with IT products and services.

The contract, specifically for Agency Consolidation End-user Services (ACES), carries a minimum four-year term but can be extended through two three-year options to a total of 10 years. It marks the fourth such outsourcing contract the vendor has landed in the past month, following earlier deals with BP for $400 million, German utility E.ON IT GmbH for $1.4 billion and TOPS Friendly Markets LLC for $80 million.

Under terms of the award, HP will provide and manage the NSSC’s hardware, software, mobile IT services, peripherals, accessories, services and infrastructure under a fixed price arrangement with open provisions for quantity and delivery of products and services. The agreement does not cover networking and data centers.

“The NASA contract is very important for HP and we are honored to have been selected,” said Dennis Stolkey, HP Enterprise Services senior vice president, U.S. Public Sector.

The NSSC, headed by Rick Arbuthnot, executive director, handles procurement, financial management, human resources and IT for some 75,000 NASA employees, contractors, grants holders and vendors housed in 10 centers.

“NASA personnel use IT to support NASA's core business, scientific, research and computational activities,” NASA said in a statement. “HP Enterprise Services will provide, manage, secure and maintain these essential IT services for the agency.”

Lockheed-Martin currently provides the lion’s share of outsourced IT products and services to NASA.

In 2007, HP secured a seven-year contract worth up to $5.6 billion from NASA to provide it with IT products and services.

TAGS: outsourcing,HP,technology,NASA,enterprise services

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