HP May Face More Competition for Navy’s Network Contract

January 8, 2012

Hewlett-Packard may have to fend off more bidders to keep its largest U.S. government contract, a $1.5 billion-a-year deal to operate the Navy's communications network.

The Navy is widening the competition by reducing a key requirement on the Next Generation Enterprise Network, known as NGEN. Companies with experience operating a network with at least 40,000 computers will be allowed to bid, down from the initial minimum of 100,000, Steven A. Davis, a Navy spokesman, said in a Dec. 27 e-mail. 

The original threshold of the contract, valued at as much as $7.5 billion over five years, might have limited the field to no more than four eligible companies, the Navy said in October. Those companies may have included large network operators such as Lockheed Martin and Northrop Grumman. By lowering its demands, the Navy may be able to attract more bidders, including smaller government contractors. 

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