GAO: NMCI impact must be resolved

The eight-year, $7 billion Navy-Marine Corps Intranet project is beginning to hamper the ability of Navy air depots and shipyards to plan and budget for IT beyond the current fiscal year, according to a recent report by the General Accounting Office.

GAO said estimated NMCI costs, which are considered overhead, are increasing as a share of IT costs to about 38 percent at shipyards and 31 percent at air depots in fiscal 2003. Officials at the facilities said they plan to cover the increased costs by reducing budgets in other overhead accounts, such as travel, training and property maintenance.

The project is being carried out byElectronic Data Systems Corp. of Plano, Texas.


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