NASA signs decade-long, $2.5B outsourcing pact with HP

Huge win for computing giant

NASA has signed a $2.5 billion, 10-year outsourcing contract with Hewlett-Packard, to meet it desktop, mobile and other computing needs.

The federal space agency announced late last week that it had signed the agreement with HP's Enterprise Services unit in Herndon, Va., formerly known as EDS. [HP acquired Electronic Data Systems] , or EDS, for $13.9 billion in 2008.

Under the contract, HP will [manage NASA's personal computing hardware] and software, mobile IT services, peripherals, accessories and supporting infrastructure.

NASA, which spends about $1.8 billion annually on IT, has 80,000 desktops and laptops.

The contract has a four-year base period and two three-year renewal options.

Ray Bjorklund, a vice president at consulting firm Federal Sources in McLean, Va., believes 10-year contracts are too long.

"Technology changes rapidly and the methods of contracting and purchasing also changes," said Bjorklund. "If you have a contract that is too long both the government and the contractor can get set in their ways and not necessarily embrace better ways of doing things."

Bjorklund said that seven years is about the average for contracts of comparable value. Even though the HP contracts include two options for renewal, government agencies almost always exercise the renewal option, he added.

Bjorklund did note that long contracts can help the contractor better plan ways to keep costs down over the lifecycle of the contract.

NASA's contract with HP is part of its IT infrastructure integration program, which includes adopting management practices that align with the IT Infrastructure Library (ITIL), along with improved security.

Defense contractor Lockheed Martin has been providing outsourcing desktop services for NASA.

In Feb. 2010, Lockheed received an extension of its NASA contract continuing through Oct. 31. The extension, valued at $230 million, called for Lockheed Martin to support NASA's desktop hardware, personal digital assistants, telephone operations and network services.

Patrick Thibodeau covers SaaS and enterprise applications, outsourcing, government IT policies, data centers and IT workforce issues for Computerworld. Follow Patrick on Twitter at [ @DCgov] , or subscribe to [Patrick's RSS feed ] . His e-mail address is [pthibodeau@computerworld.com] .

[Read more about outsourcing] in Computerworld's Outsourcing Topic Center.

Join the PC World newsletter!

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Computerworld Staff

Computerworld (US)

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Shopping.com

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?