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 newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Computerworld Staff

Computerworld (US)
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?