HP Enterprise Services (NYSE: HPQ) has won a $1.2 billion contract modification from the U.S. Navy to continue providing infrastructure and computer software for the internal Navy-Marine Corps Intranet.
The modification would increase the ceiling value of a previously-awarded contract from $4.9 to $6.1 billion, according to the Wednesday FedBizOpps notice from the Navy.
Work under the continuity of services contract will occur until Sept. 30, 2014 as the Navy and Marine Corps are transitioning to the Next Generation Enterprise Network, the Navy said in the notice.
Options will only be exercised upon delay of the award of and transition to the NGEN program, potentially worth $4.5 billion.
NGEN is intended as the successor to the NMCI and HP is leading a team bidding on NGEN.
HP’s team includes AT&T (NYSE: ATT), IBM (NYSE: IBM), Northrop Grumman (NYSE: NOC) and Lockheed Martin (NYSE: LMT).
Another competing team comprises of Computer Sciences Corp. (NYSE: CSC), General Dynamics (NYSE: GD), Harris Corp. (NYSE: HRS) and Verizon (NYSE: VZ).
