IBM Corporation (NYSE: IBM), Hewlett Packard Co. (NYSE: HPQ), Dell Inc. (Nasdaq: DELL), Lockheed Martin Company (NYSE: LMT) and Cisco Systems Inc. (Nasdaq: CSCO), have filed in the prequalification tender published by the Ministry of Defense to set up a server farm in the Negev for the IDF. The BOT (build, operate, transfer) tender is for the establishment, operation and maintenance of the server farm and additional sensitive electronics systems. The estimated size of the tender is NIS 2 billion, and has earned the nickname "five-nines" because of the reliability standard specification to operate 99.999% of the time.
The server farm project is part of the IDF's move to large bases in the Negev. The project is in two stages. The tender for the first stage for NIS 300 million in infrastructure and construction work was won by Shikun & Binui Holdings Ltd. (TASE: SKBN) subsidiary Shikun u'Binui Solel Boneh Building and Infrastructure Ltd..
In the tender for the second stage, bids were filed by consortia of IT companies that specialize in the establishment, operation, and maintenance of computer and electronics systems and engineering firms to carry out the civil engineering work. The prequalification stage, which was closed on Friday, attracted leading multinationals.
The consortia are IBM and Shikun and Binui; Dell, Shafir Civil and Marine Engineering Ltd., and Ness Technologies Ltd.; HP and Electra Ltd. (TASE: ELTR); Lockheed Martin with RAD Bynet Communications Ltd.; and consortium including Cisco, Malam Team Ltd. (TASE: MLTM), El Har Engineering and Construction Ltd. and EMC Corp. (NYSE: EMC)
The IDF's move to the Negev includes the transfer of the Air Force's logistics base from Ben Gurion Airport to the Nebatim Air Force Base, and the construction of Training Base City by a consortium of Minrav Holdings Ltd. (TASE: MNRV) and Rad Bynet, which won the NIS 8.5 billion tender to build and operate the base, which is due to become operational in 2014. The Ministry of Defense will also invest NIS 19 billion to build the new technology campus for the Communications and Computing Corps and the new Military Intelligence base at Shoket Junction in the Negev.
Published by Globes [online], Israel business news - www.globes-online.com - on September 23, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012