HP Navy-Marines Intranet Contract Ceiling Set to Be $5.5B

HP Enterprise Services (NYSE: HPQ) is set to receive a $2.1 billion contract modification from the U.S. Navy to continue operating the Navy and Marine Corps Intranet.

A Navy contracting notice says the continuity-of-service modification will increase the contract’s ceiling value from its current $3.39 billion amount to a maximum $5.51 billion.

The Navy expects to exceed the current ceiling amount by September, it said in the notice.

HP owns and controls most of the infrastructure and software for running the NMCI after obtaining the program in 2008, following its acquisition of Enterprise Data Systems.

The company is leading a team of contractors to bid on NMCI’s successor, the potential $4.5 billion Next Generation Enterprise Network program.

AT&T (NYSE: ATT), IBM (NYSE: IBM), Northrop Grumman (NYSE: NOC) and Lockheed Martin Corp. (NYSE: LMT) are aligned with HP.

The other team consists of Computer Sciences Corp. (NYSE: CSC), General Dynamics (NYSE: GD), Harris Corp. (NYSE: HRS) and Verizon (NYSE: VZ).

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