HP awarded $35 million contract with IRS

The U.S. Internal Revenue Service has signed a contract with a Hewlett-Packard Co. reseller to purchase more than US$35 million worth of new HP desktop and notebook PCs for its employees.

In a statement, HP said it would supply the IRS with more than 12,300 Compaq Evo desktop PCs and monitors and more than 11,000 Compaq Evo N800 notebooks through an IRS contract with HP reseller PlanetGov Inc. in Chantilly, Va.

Pat Gallagher, director of business development at HP, said that Dell Computer Corp., one of its competitors, had previously supplied equipment to the IRS, but the agency realized HP could provide the agency with higher-quality products at a lower cost.

Gallagher said the IRS had been a longtime customer of Compaq Computer Corp. before switching to Dell. The contract announced Wednesday represents a competitive "win-back," according to the statement. HP acquired Compaq earlier this year.

An IRS spokesman said he could not provide anyone to speak specifically about the contract.

Gallagher said the equipment HP is providing would help the IRS become more efficient.

"This gives us the ability to work with the IRS to meet all its needs with products from handhelds to high-end clustered systems," Gallagher said. "The IRS can now meet its needs with one vendor."

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