Army extends ITES 2 hardware contract by $500M

UPDATE: This story has been updated to clarify that it is an extension of the ITES-2 Hardware contract and not a new award.

The Army has awarded a $494 million contract extension to six companies under the product portion of the IT Enterprise Solutions II program.

Read Nick Wakeman's blog updating this story.

The six companies will compete for task orders under the contract for hardware, software and related services. The Defense Department announced the winners after 5 p.m. Friday.

The winners are:

• Dell (contract number W91QUZ-07-D-0006)
• IBM Corp. (W91QUZ-07-D-0007)
• Unicom Government Inc., formerly GTSI, (W91QUZ-07-D-0008)
• CDW Government (W91QUZ-07-D-0009)
• Iron Bow Technologies (W91QUZ-07-D-0010)
• World Wide Technology Inc. (W91QUZ-07-D-0011)

The contract extension has a maximum value of $494 million and will support the ITES 2 program, which expires next year.

According to data on the Deltek GovWin database, the contract brought in $611 million in task orders in 2012 . Over the life of the contract, it has been used for $4.6 billion in task orders.

Based on those numbers, Deltek estimates that the ITES 3H contract will be worth $5 billion. The bids for that contract are currently being evaluated.

Under ITES 2 H, World Wide and Iron Bow have led the way with $1.2 billion each in task orders, according to Deltek.

CDW had $788.5 million in task orders, followed by GTSI, now Unicom, with $723.3 million; Dell captured $658.4 million and IBM, $146.1 million.