Hewlett Packard (HP)היולט פקרד
A global technology, computing and IT services provider. The company owns EDS Israel, which merged into HP and since 2009 it is called: "HP Enterprise Services".
HP itself states: "Israel is one of the few countries where HP has a massive presence, including the following entities: HP Israel; The Indigo Division – Digital Printing Solutions; HP Industrial Printing (formerly Scitex Vision); HP Software (formerly Mercury) and HP Labs. HP is the second largest investor in Israeli IT". The company also states that "From 2001-2011, HP invested over $6 billion in the acquisition of Israeli companies, including the establishment of production plants".
Since 2011 HP has been supplying the computer systems of the ministry of defense. The tender was worth an estimated NIS 500 million. Under the Ministry of Defense tender, the company was contracted to manage the ministry and IDF's server farms for five years.
The Basel system
EDS has provided the Israeli ministry of defense with the development, installation, maintenance and on-going field support of the Basel System. The Basel System is an automated biometric access control system which includes a permit system for Palestinian workers, with hand and facial recognition, installed in checkpoints in the Occupied West Bank and Gaza. The system was financed by the US government following the Wye River Memorandum.
On September 12, 2011, Who Profits from the Occupation received a response from the Israeli Ministry of Defense to an inquiry the project submitted regarding the Basel System. The response confirmed that HP was contracted by the Ministry to operate and maintain the Basel System until December 31, 2012. The Ministry of Defense indicated that the system is installed at the following checkpoints in the occupied West Bank: Jericho, Bethlehem (Ma'avar Rachel), Jenin, Nablus, Tulkarem, Hebron, Abu Dis, Tarkumia and at the Ephraim Gate (Sha'ar Efraim, Irtach).
In a response to a freedom of information inquiry submitted by Who Profits in 2014, the Israeli Ministry of Defense stated that the system is also installed in the following checkpoints: Jalame (Gilboa), Barta'a (Rihan), Tura (Shaked), Eyal, Eliyahu, Yoav, Hashmonaim (Nialin), Macabim (Beit sira), Al-Jib (Givat Ze'ev), Qualandia (Atarot), Ras Abu-Sbitan (Hazietim), Halamed He and Sansana (Meitar).
In April 2013, Who Profits received an answer from the Israeli civil administration stating that the Israeli ministry of defense prolonged its contract with Hewlett Packard (HP) for the maintenance of the Basel system in checkpoints until June 30 2013. The response further states that the contract will be extended until the end of 2013, after the Israeli state budget will be approved by the Israeli parliament - the Knesset.
In 2014, the Israeli Ministry of defense responded to a freedom of information inquiry submitted by Who Profits, and stated that HP is contracted to maintain the Basel biometric system in West Bank and Gaza checkpoints until the end of 2015.
Companies involved in the Basel system:
* L-1 Identity solutions (part of the Morpho Group)
A public American company that provided its FaceIt(R), a facial recognition technology to the Basel Project.
* Oberthur Technologies
A French company traded in the Euronext. The company’s division "Smart Cards USA" supplied microprocessor ID cards for the Basel Project.
* Polimil and the DataCard Group
The DataCard Group, a private American company provided the enrollment and issuing subsystem for the Basel Project, through its exclusive Israeli distributor, Polimil.
* Recognition Systems (part of the Irish Allegion group)
A public American company that provided hand geometry readers for the Basel Project.
Services and technologies to the Israeli Army
HP has provided services and technologies to the Israeli army, among which is the administration of the Israeli navy's IT infrastructure. The Israeli navy enforces the naval blockade on the Gaza Strip since 2007. The IT infrastructure provided by HP to the Israeli navy was used by the Israeli military as a pilot for implementing the same system to the entire army, a “virtualization project” contract won by HP in 2009. In the same year, HP Global won another contract to supply all computer equipment to the Israeli military. The contract was signed for three years with an option to prolong it for another two years.
In addition, in May 2011, HP received a four years tender to implement and assimilate ERP SAP systems for the Israeli army in hundreds of thousands NIS. In December 2011 HP won a 500 million NIS tender to provide, implement and maintenance all the servers in the IDF and in the Israeli security forces. The tender is for three years with an option to prolong it for another two years. HP will provide the Israeli army with new servers and will also provide and assimilate accompanying equipment which includes different control systems. The contract was signed in the US and most of it was sponsored by the US Military Aid funds
Services and technologies to the Israeli prison services (IPS)
According to a response received on December 2013, from the Israel Prison Service (IPS) to a freedom of information request by Who Profits. HP is contracted to provide printers and maintenance of HP systems and central servers until 2016, in the amount of tens of millions of shekels.
HP also provides technological services to the Israeli prison's authority. In August 2012, the Israeli prison authority announced the signature of a contract with HP without a tender for the provision of central servers for the operational system of the IPS, "Tzohar". HP will also provide maintenance services for these servers. In addition, HP executed a project of e-mail storage and archive in the IPS.
According to a report of the state comptroller, in August 2006 the IPS published a tender to establish a new computing system, "Kidma" system, which was supposed to replace the information system of the IPS. In October 2007 the IPS signed a contract with HP to develop the system, which was supposed to include a human resources system, prisoners' management system, prison management system and an intelligence sub system. Initially the budget of the project was 43.2 million NIS. In 2004 it increased to 62.5 million NIS. The budget didn't include the maintenance of the system and until 2012 the budget increased to 144 million NIS, more than three times the initial budget. The project was supposed to be executed in 23 months and was estimated in 43 million NIS, yet, the project took 5 years and cost over 144 million NIS. The IPS commissioner stated that since 2010, the IPS hasn't been paying HP any funds. The IPS froze the money transfer to HP back in 2010 and in 28 February 2013, the IPS signed a termination contract with HP. Eventually, the amount paid to HP was 126 million NIS and the company completed 3 out of four systems that were required.
In a response to a freedom of information inquiry submitted by Who Profits in 2014, the Israeli Prison service stated that HP is contracted to provide printers and to maintain HP systems and central servers in the Israeli prisons during 2016.
Services to settlements
HP operates a development center in Beithar Illit which employs ultra orthodox women. EDS has been operating this center since 2006 and from 2008 it has been operated by HP. Until January 2012, the center was located in a facility of Beithar Illit's municipality. Afterwards HP expended this center by building an additional structure. The structure was constructed using a three years grant that the company received from the Ministry of Industry and Employment in the amount of hundreds of thousands of NIS per year.
HP provides services and technologies to two of the biggest Israeli settlements in the occupied West Bank: Modi'in Illit and Ariel. Matrix and its subsidiary Tact Testware, which provide technological services to HP, are located in the illegal settlement Modi'in Illit. Matrix distributes HP computers, servers and virtualization solutions. Matrix's personnel were trained by HP to provide software and services. Tact Testware provides HP with licenses and services in the field of testing and automatization.
Biometric ID cards
In 2008, HP signed a contract with the Israeli Ministry of Interior for the production and manufacturing of biometric ID cards for Israel's citizens, including the Palestinian residents of Israel and occupied East Jerusalem.
The company operates and maintains the Aviv system, the computing company of the population, immigration and border passing authority. HP has been operating this system since 1997 without a tender. The authority has a contract with the company until the end of 2013.The Aviv system includes the "Yesha database" which contains information on the Israeli citizens in the settlements.
In 2014, the population and immigration authority contracted HP to continue the maintenance and development of the foreign workers system (Maoz system) and assimilate the system into the Aviv system, for the amount of over 2 million NIS.
In 2011 HP was contracted without a tender to install a standpoint of the population registrar, which is connected to the population registrar system. The Arbel unit of the authority of population handles the replacement of passports to biometric ID's. The Arbel project includes the collection and archive of all the information about Israeli citizens. In 2013, state employees of the project were replaced by HP employees. In 2013, HP was contracted without a tender to supply hardware to the issuing machines, other than the software and the machines themselves.
Smart City project
HP also takes part in the "Smart City" project in the illegal West Bank settlement of Ariel, providing a storage system for the settlement's municipality. The illegal settlement of Ariel was chosen by the Israeli government as a pilot city for this program.
Major shareholders: Royce & Associates LLC (3.5%), FMR LLC (2.9%), Bamco NY (2.6%), Barclays Global Investors UK Holdings (2.5%), Capital world investors (2.5%), UBS Global Asset Management Americas (2.1%), Bank of New York Mellon Corporation (2%).
Chair and CEO: Meg Whitman
CEO of HP Israel: Yehoshua Bakula
3000 Hanover Street
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