Navy finalizes another NGEN extension for Perspecta

The Navy has finalized another extension to Perspecta for broad IT hardware and services as the branch moves closer to awarding the next iterations of its Next Generation Enterprise Network contract.

Perspecta was awarded $657 million to continue its work for at least an additional four months beyond the current NGEN extension it is performing on, according to releases from both the company and Defense Department.

That means the ordering period extends from June 1, 2020 to Sept. 30, 2020 with three one-month options available to December 2020.

NGEN is the Navy’s main contract to support its global Intranet network and also the largest in the portfolio of Perspecta. The company has rebid for the award that contributes between one-fourth and one-fifth of its almost $4 billion in revenue.

For the ongoing recompetes, the Navy has split the contract into a lucrative services portion that General Dynamics and Leidos are pursuing as a takeaway opportunity, and a smaller track for end-user hardware.

The Navy is eyeing an award for the services piece sometime between January and March of next year with the hardware portion this year.

As far as Perspecta goes: the extensions not only give them more time to perform the current work and gain past performance but also win other contracts to reduce the risk of a potential NGEN loss.

Perspecta had some success on the latter front in the company's first year of operations and also its just-ended first quarter.