CSC Protests $3.5 Billion U.S. Navy Award to Hewlett-Packard

Computer Sciences Corp. (CSC) and Harris Corp. (HRS) are challenging a $3.5 billion award to Hewlett-Packard Co. (HPQ) for running the U.S. Navy’s communications network.

The protests were filed today to the U.S. Government Accountability Office, according to Ralph White, the agency’s managing associate general counsel for procurement law. The GAO, which arbitrates contract disputes, has until Oct. 23 to make a decision on the protests, White said.

Palo Alto, California-based Hewlett-Packard has operated the Navy’s network since 2008, receiving almost 40 percent of its $2.6 billion in direct federal awards in the year ended Sept. 30 from the agreement, according to Bloomberg Industries. It is HP’s biggest U.S. government contract.

Heather Williams, a spokeswoman for Falls Church, Virginia-based CSC, declined to comment about the details of the protest in an e-mail. Jaime O’Keefe, a spokeswoman for Melbourne, Florida-based Harris, didn’t immediately respond to an e-mail or phone call seeking comment about the reason for the challenge.

The decision to award the five-year contract to manage the Navy’s 800,000-user network to HP was announced June 27.

The “solicitation and evaluation process was rigorous and thorough,” Bill Toti, a vice president for the unit of Hewlett-Packard that won the contract, said in an e-mailed statement. HP “has every confidence in the Navy’s evaluation and selection.”

Hewlett-Packard’s team for the so-called Next Generation Enterprise Network includes Lockheed Martin Corp. (LMT), International Business Machines Corp., AT&T Inc. (T) and Northrop Grumman Corp. (NOC)

Harris and CSC’s bid for the work included General Dynamics Corp. (GD), Verizon Communications Inc. and Dell Inc. (DELL)

To contact the reporter on this story: Kathleen Miller in Washington at kmiller01@bloomberg.net

To contact the editor responsible for this story: Stephanie Stoughton at sstoughton@bloomberg.net

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