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HP wins contract with IRS

Hewlett-Packard wins a $35 million contract to supply Compaq-brand desktop and notebook PCs to the Internal Revenue Service.

Hewlett-Packard said Wednesday that it won a $35 million contract to supply desktop and notebook PCs to the Internal Revenue Service.

Under the deal, HP will supply the IRS with more than 12,300 Compaq Evo D500 desktop PCs and monitors and more than 11,000 Compaq Evo N800 notebooks through PlanetGov, a Chantilly, Va.-based systems integrator that serves the federal government.

In a statement, HP touted the deal and called it "a competitive win-back" because the IRS had been a longtime Compaq Computer customer before switching to an unnamed rival.

HP, which has announced similar deals recently, is trying to deflect concerns that rivals such as Dell Computer will poach customers while HP works to absorb Compaq. The IRS, which is trying to upgrade its systems, is a plum account for a technology company.

In recent days, PC makers have been touting customer wins in an effort to show they are doing well amid weak IT spending.

On Tuesday, Dell Computer said Sears Roebuck will use its gear to update the technology infrastructure at 870 stores. Dell didn't reveal financial details of the deal, but sources said it is valued at $15 million to $20 million.

Under the deal, Sears will buy 1,800 PowerEdge 2500 servers, seven PowerVault 220S storage systems, 3,700 OptiPlex GX50 desktops, and 14,600 Dell E551 and E771p monitors.