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

03.01.2011
WASHINGTON -- 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. , or EDS, for $13.9 billion in 2008.

Under the contract, HP will 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.