NASA’s Inspector General (IG) reviewed NASA’s $2.5 billion Agency Consolidated End-User Services (ACES) contract with HP Enterprise Services to provide computer equipment and services. The IG found that NASA and HP encountered “significant problems” implementing the contract, including the failure to replace most employees’ computers within the first six months and low customer satisfaction. According to the IG, “NASA’s lack of adequate preparation prior to deploying the ACES contract together with HP’s failure to meet important contract objectives has resulted in the contract falling short of Agency expectations. We attribute these shortcomings to several factors, including a lack of technical and cultural readiness by NASA for an Agency-wide IT delivery model, unclear contract requirements, and the failure of HP to deliver on some of its promises.” The IG found that “top NASA IT officials expressed the view that HP is performing poorly under the contract even after taking into consideration the Agency’s failure to establish sound performance metrics.” The IG also found that, since contract inception in 2010, NASA has retained approximately $6.9 million from HP for inadequate performance.