Amid investigation, HP nets new contracts

HP also signs an extension of its outsourcing deal with DirecTV

See correction below

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

The contract provides for several US agencies to order desktop PCs, laptops, printers, scanners, and other products from HP and other vendors. The deal does not include specific volumes of products but is estimated to have a combined value for all the vendors of $5 billion. HP didn't say how much its portion would be worth.

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. 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 $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.

This article was revised from its original version to correctly reflect the size of HP's share of the contract.

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