Dell's deal is part of a massive overhaul of the Navy's computer systems that will provide high-speed connections to a central intranet. No dollar figure was provided for Dell's portion of the multiyear contract, which is valued at $6.9 billion and will be shared by several vendors.
The U.S. Navy on Friday announced that Electronic Data Systems will be the sole contractor of the Navy-Marine Corps Intranet, or NMCI, project. The project will tie together some 360,000 Navy and Marine personnel by giving them access to a common intranet and multiple databases.
Dell was named as a subcontractor for the deal, along with Cisco Systems, Wamnet and Microsoft. Raytheon and WorldCom also will participate.
With today's announcement, Dell clarified its role.
"We just wanted to reiterate our role in the contract given that the government has been a long important customer of ours," said Barry French, Dell's director of communications. "Being the supplier of workstations is a significant win for us."
In late trading, Dell shares were at $24.31, down $1.31.
Last week, Dell warned its revenue will grow only 7 percent over revenue of $7.67 billion in its second fiscal quarter. A month ago, Dell said it expected to see revenue growth for its third quarter reach 10 percent or slightly higher.