Despite the tumultuous situation surrounding the Autonomy
issue (H-P's Autonomy Buy: A Blame Game), the PC giant
) ended the year on a positive note. The company (aka H-P)
retained a federal contract worth $543.0 million despite
) protest. The contract was held back for evaluation issues,
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Back in June, a contract was announced by the Department of
Veterans Affairs (VA). The 5-year wireless tracking contract
required the 90 competing companies to provide a technology to
reduce the number of lost equipment, monitor sterilization of
medical devices and identify patients receiving recalled
H-P was initially awarded the contract. In response, IBM
challenged the agency's decision and its evaluation process
before the U.S. Government Accountability Office (GAO), the
agency to resolve contract disputes.
The GAO held the Department of VA guilty of not evaluating the
proposal properly and ordered a re-run of the selection process.
The re-evaluation process turned out to be positive for H-P as
the agency found H-P's technological support to be the most
A win against IBM and the federal agency's continued reliance on
its services is certainly a reason to cheer for H-P. But the
pending decision regarding the authenticity of accounting
irregularities in Autonomy's financials (before the acquisition
deal) and declining revenue trend (owing to soft PC market and
strained IT spending) is keeping the tech giant under pressure.
Currently, H-P has a Zacks #3 Rank (Hold). Its archrivals
) and IBM also have a Zacks #3 Rank (Hold).