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GAO Upholds Hewlett-Packard’s $3.5 Billion U.S. Navy Award

Harris Corp. (HRS) lost its challenge of a $3.5 billion contract awarded to Hewlett-Packard Co. (HPQ) to run the U.S. Navy’s communications network.

The Government Accountability Office today upheld HP’s five-year agreement, according to a company e-mailed statement. Harris had challenged the June 27 award. GAO, which confirmed the decision, hasn’t released its findings.

“The Navy has selected the right team for the challenges ahead, bringing to sailors and marines new and innovative thinking coupled with more than a decade of experience building and operating the network,” Marilyn Crouther, senior vice president and general manager for an HP unit, said in a statement.

Jaime O’Keefe, a Harris spokeswoman, declined in an e-mail to comment on the decision.

Palo Alto, California-based HP has operated the 800,000-user network since 2008. The company is the 26th largest federal contractor, receiving $2.6 billion in contracts in fiscal 2012, according to Bloomberg Government.

Computer Sciences Corp. (CSC) withdrew its protest of the award in August. The Falls Church, Virginia-based company declined to give a reason.

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

-- Editors: Elizabeth Wasserman, Bernard Kohn

To contact the reporters on this story: Kathleen Miller in Washington at kmiller01@bloomberg.net; Jonathan D. Salant in Washington at jsalant@bloomberg.net

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

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