Hewlett-Packard Unit Wins $2.5 Billion NASA Contract

Hewlett-Packard Co. landed a NASA information-technology contract valued at as much as $2.5 billion over 10 years, putting the space agency’s computers under HP’s management.

The agreement with the National Aeronautics and Space Administration involves personal-computing hardware, standardized software, peripherals and other technology, the agency said today in a statement.

“It’s basically everything that’s plugged into the wall that’s IT,” Michael Sweigart, a spokesman for NASA, said in an interview. “This contract combines some services on a number of different contracts across the agency.”

The deal brings a high-profile customer to HP as it builds up its computer-services business. The company bought Electronic Data Systems Corp. for $13.2 billion in 2008, vaulting HP to No. 2 in services behind International Business Machines Corp. Palo Alto, California-based HP leads the market for PCs and printers.

Lockheed Martin Corp. currently provides the bulk of the services for NASA, Sweigart said. The new agreement doesn’t include computer networks and data centers.

“Our team is disappointed that NASA selected another solution,” Sheila Collins, a spokeswoman for Bethesda, Maryland-based Lockheed, said in an e-mailed statement. “We submitted a ‘best-value’ solution based on our knowledge of the program and our understanding of NASA’s mission. We continue to serve NASA on other contracts.”

HP, whose offices are closed for the holidays, didn’t immediately return messages seeking comment.

HP rose 8 cents to $41.82 in New York Stock Exchange trading today before the news was announced. The shares have declined 19 percent this year. Lockheed gained 6 cents to $69.31.

To contact the reporter on this story: Ryan Flinn in San Francisco at rflinn@bloomberg.net

To contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.net

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