HP, the largest maker of personal computers in the world, said Wednesday that it had signed a seven-year contract with the U.S. National Aeronautics and Space Administration (NASA) under which the firm will supply the world’s top space exploration agency various hardware.

HP signed seven-year contract worth up to $5.6 billion with NASA to provide a wide range of technology as needed by U.S. federal government agencies. The list of products to be supplied by HP will include desktops, workstations and blade machines with Linux and Unix capabilities, servers and printers, among other offerings.

HP products to be provided under the indefinite delivery indefinite quantity (IDIQ) contract, called the NASA solutions for enterprise-wide procurement (SEWP) IV Class 5. The entire federal government and its authorized prime contractors can purchase HP technology through SEWP IV. In addition, the U.S. Department of Veterans Affairs has made NASA SEWP IV its mandatory contract for the acquisition of technology.

The NASA SEWP IV government-wide acquisition contract (GWAC) provides the latest in information technology solutions for all federal agencies. SEWP IV offers:

• Low prices – guaranteed at or below U.S. General Services Administration schedule prices;
• Lowest surcharge (0.6%), capped at $18 000 for orders more than $3 million;
• Easy and fast ordering procedure with personalized customer support and order tracking.

HP has delivered more than $620 million worth of products and services to federal government agencies from 1992-2007 through the previous NASA SEWP II and SEWP III contracts.

“As the federal government looks to maximize investments, reduce costs and increase efficiencies, it needs a technology partner that delivers products and complete solutions that operate seamlessly in complex IT environments,” said Jack Novia, managing director and senior vice president, Technology Solutions Group – Americas, HP. “With this NASA SEWP IV contract, HP is pleased to extend our partnership with federal government agencies and help them accomplish their mission goals.”

A beneficiary of the move may be Foxconn Electronics, as, according to some Taiwan sources, HP was looking forward a supplier, who would make chassis and other components for both desktops and notebooks in order to cut-down the costs. One of a few companies who comply to HP's requirements is Hon Hai Precision Industry (Foxconn's parent company).

The contract may mean a substantial blow for Dell Inc., the No. 2 maker of computers.