The San Diego County Board of Supervisors last Tuesday unanimously approved a $918 million contract extension with Hewlett Packard Enterprise Services. Under the agreement, the company will continue providing and managing the county’s information technology and telecommunications services for the next seven years.
The county has outsourced IT services, such as help desk and data center functions, to a private company since 1999, beginning with Computer Sciences Corp. Northrop Grumman Corp. then took over from 2007 to 2011 before transferring ownership of its $700 million contract to Hewlett-Packard, two years before the agreement was scheduled to end.
HP was officially selected for the contract’s latest rebid in early May 2016, following a Request for Statement of Qualifications and Request for Proposals issued by the county’s Department of Purchasing and Contracting in December 2015 and February 2016, respectively. IBM was the only other company that responded to the RFP.
The contract includes a one-time cost of approximately $12 million to consolidate the county’s data and applications into a single data center. While HP Enterprise’s existing agreement was set to expire January 2018, the new arrangement extends the contract from now to 2023 and also offers a five-year renewal option.
