The Ministry of Defence (MoD) has awarded a three-year contract for IT support, solutions and maintenance to HP.

Valued at $21 million (£13.5 million), the contract covers core service areas, with an option to add bespoke and ad-hoc services. HP fought off competition from Fujitsu to win the contract, which began on 1 April 2012 and has an option to extend for a further two years.

Paul Beavin, head of ICT procurement at the MoD, said: ”For the first time, the British Armed Forces - the Royal Navy, the British Army and the Royal Air Force - can rely on a consistent and transparent level of support for IT assets in the UK and at overseas bases.

"This contract has been adopted as a model by the Government Procurement Service, part of the Cabinet Office’s Efficiency and Reform Group, so could be used for other government departments.”

The core services that HP will provide includes a 24/7 UK call centre, hardware break-fix services for repair or replacement of MoD IT equipment around the world and bespoke software support for the MoD’s desktop and data centres.

The IT company will also provide hardware refurbishment, redeployment and recycling, asset maintenance, management of the IT asset database and computer room environment management.

HP has provided support for the MoD’s IT environment for more than 10 years. It currently supports more than 200,000 PCs, office equipment and telecommunications assets at the MoD.

Its previous contract with the MoD was also for three years, but the scope was “slightly different” said Melanie McGrory, CIO of HP Enterprise Services. One of the differences was that in the old contract, the call centre, and some other services, were not provided on a 24/7 basis, she said.

The contract win is good news for HP, which recently lost a payroll and personnel services contract, believed to be worth £100 million a year, to CSC.