HP Wins $2.5 Billion NASA IT Services Contract

Top 10 Government Stories Of 2010

NASA has picked HP to procure and manage its PC hardware, software, mobile services, and other infrastructure critical to agency activities in a $2.5 billion outsourcing contract.

The space agency awarded Herndon, Va.-based HP Enterprise Services the firm-fixed-price, indefinite delivery/indefinite quality contract on Dec. 27. HP Enterprise Services previously was systems integrator EDS, which HP purchased in May 2008.

The contract has a four-year base period with two three-year options; potentially NASA could use HP as an outsourcer for 10 years under the contract.

Officially, the HP contract is for what NASA calls Agency Consolidated End-user Services (ACES), the IT infrastructure and services that support the activities of NASA personnel.

Specifically, HP will procure, manage, secure, and maintain the essential infrastructure for the business, scientific, research, and computational activities of NASA personnel, according to the space agency.

HP beat out a significant incumbent competitor, Lockheed Martin, for the deal. HP has been working to expand its services business through the EDS deal and other strategic purchases over the last few years, and the NASA deal bolsters that plan.

NASA will manage the contract at its NASA Shared Services Center (NSSC) in Mississippi. The NSSC is a partnership between NASA, Computer Sciences Corp., and the states of Mississippi and Louisiana, and performs business activities for all of NASA's 10 centers.