HP's Rivals Are Trying To Block A $3.5 Billion Navy Contract

Meg Whitman speakingHP CEO Meg Whitman

HP’s rivals are not happy that the U.S. Navy opted to renew its outsourcing contract with HP, valued at over $3.5 billion for the next five years. 

The rivals for the contract, a group led by Computer Sciences Corp. and Harris Corp., have filed a protest with U.S. Government Accountability Office, reports Bloomberg’s Kathleen Miller.

The Navy has been using HP to run its networks for years. But it didn’t want to be stuck with a single outsourcer for the next contract period so it required HP to add outsourcing partners and share the responsibility. HP’s coalition included other outsourcers AT&T, IBM, Lockheed Martin and Northrop Grumman Systems, who all would get a share of the $3.5 billion contract.

Computer Sciences Corp. and Harris Corp were part of a coalition bidding against the group led by HP.

These kinds of protests are common, especially over contracts as big as this one. But they do sometimes succeed.  IBM protested the CIA’s contract to hire Amazon to build a “private cloud” data centre for up to $600 million and won.

The Government Accountability Office (GAO) investigated and found that Amazon’s bid was a whopping $54 million higher than IBM’s. It asked the CIA to go back through the bidding process again.

With $3 billion at stake, anything can happen in this protest, too.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.