Compaq wins major USPS deal

The U.S. Postal Service announced Oct. 11 that it has awarded its Acquisition of Desktop Extended Processing Technology (ADEPT 2) contract, valued at up to $2 billion, to Compaq Computer Corp.

The contract requires purchases of all end-to-end industry-standard Microsoft Corp. Windows- and Intel Corp.-based IT solutions. The base five-year contact is valued at $1 billion, but contains options that could result in a total term of 10 years and double the dollar amount.

The contract includes services as well as Compaq and third-party products across the Postal Service's distributed computing environment.

"On ADEPT1, we did more than $1.2 billion in products and services.and this is for up to $2 billion," said Peter Blackmore, executive vice president of worldwide sales and services at Compaq.

In addition to supplying desktops, severs and other equipment, Compaq must also provide support services, including maintenance, repair and replacement of the hardware it sells. But Blackmore said he thinks those capabilities are what helped Compaq secure the award.

"Through our orals and written proposals, it was centered around services and program management capability as much as the project well as the strength of the team on the account, and of course the pricing and dollars involved," Blackmore said.

The Postal Service will be able to purchase the "very latest Intel-based Windows technology," including Compaq's revamped Evo product lines of notebooks, workstations and thin clients, as well as its latest "industry-standard server technology," Blackmore said.

Known as ADEPT2, the new contract is a "re-compete" of a contract awarded to Digital Equipment Corp., which Compaq later acquired, in 1994. Compaq delivered more than $1.2 billion of products and services—including more than 32,000 servers, 180,000 desktop computers and 50,000 notebook computers —on ADEPT1.

That contract was originally valued at $200 million, but was extended repeatedly and eventually grew to more than $1 billion, according to Postal Service contracting officials.

Alan Promisel, a PC analyst at IDC, said ADEPT2 will obviously provide a major financial boost to Compaq, but also help the company in other ways.

"It's an incredible injection of cash into a company that is really bleeding right now...and the visibility of the Postal Service brand is something they can use to show other business customers," Promisel said, adding that stockholders will also be pleased in view of the uncertainty that has followed Compaq since the merger announcement with Hewlett-Packard Co.

From a pure technology standpoint, some manufacturers have a slight advantage over others, "but nothing that significant to change the course of a deal," Promisel said. He added that Compaq's pricing has become increasingly competitive with the likes of Dell Computer Corp. and IBM Corp., and the company has shown an improvement in its service offerings.

FCW in Print

In the latest issue: Looking back on three decades of big stories in federal IT.


  • Anne Rung -- Commerce Department Photo

    Exit interview with Anne Rung

    The government's departing top acquisition official said she leaves behind a solid foundation on which to build more effective and efficient federal IT.

  • Charles Phalen

    Administration appoints first head of NBIB

    The National Background Investigations Bureau announced the appointment of its first director as the agency prepares to take over processing government background checks.

  • Sen. James Lankford (R-Okla.)

    Senator: Rigid hiring process pushes millennials from federal work

    Sen. James Lankford (R-Okla.) said agencies are missing out on younger workers because of the government's rigidity, particularly its protracted hiring process.

  • FCW @ 30 GPS

    FCW @ 30

    Since 1987, FCW has covered it all -- the major contracts, the disruptive technologies, the picayune scandals and the many, many people who make federal IT function. Here's a look back at six of the most significant stories.

  • Shutterstock image.

    A 'minibus' appropriations package could be in the cards

    A short-term funding bill is expected by Sept. 30 to keep the federal government operating through early December, but after that the options get more complicated.

  • Defense Secretary Ash Carter speaks at the TechCrunch Disrupt conference in San Francisco

    DOD launches new tech hub in Austin

    The DOD is opening a new Defense Innovation Unit Experimental office in Austin, Texas, while Congress debates legislation that could defund DIUx.

Reader comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

More from 1105 Public Sector Media Group