HP says US Army deal could be worth US$5 billion

HP continues to win new contracts, some of them substantial, even in the midst of boardroom drama.

Despite a boardroom scandal that seems to deepen every day, Hewlett-Packard has won new contracts this week, including one that could be worth US$5 billion over the next 10 years.

The U.S. Army awarded HP a contract that allows several U.S. agencies to order products including desktop PCs, laptops, printers, scanners and displays from HP. The deal does not include specific volumes of products but HP estimates that it will be worth US$5 billion.

The contract could last as long as 10 years if the groups agree on optional extensions. HP expects to begin taking orders Oct. 1.

HP has also signed a seven-year extension on an outsourcing deal with DirecTV Inc. HP will continue providing IT operations and applications testing services that help DirecTV introduce new services, acquire customers and ensure bills are sent accurately and quickly. HP will also offer local area network management, data center operations, database support and disaster recovery for DirecTV.

The contract extension is valued at about US$500 million.

The deals come at a troubled time for HP. The company's chairman said this month that she will step down for her part in an investigation of internal company leaks that involved obtaining private phone records of HP employees and journalists. Details of the extent of the investigation, and the extent to which HP's top executives were involved in it, continue to surface.

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