Navy pushes back $5B NGEN bids

The Navy has given an extension to contractors bidding on the $5.4 billion Next Generation Enterprise Network project.

Bids were due July 18, but the Navy has moved the deadline back until Aug. 8 because of several amendments to the solicitation and severe weather in the Washington D.C. area that caused power outages, according to a posting

More on the Navy's NGEN strategy

The Navy is using NGEN to replace the Navy Marine Corps Intranet as the IT support contract for 800,000. The service s spends about $1 billion a year through the NMCI contract, held by Hewlett-Packard Co.

HP Enterprise Services is leading one of two teams chasing NGEN. The second team is led by Harris Corp. and Computer Sciences Corp. So far they are the only announced bidders on the contract.

The extension of the due date for proposals apparently doesn’t impact the current timeline of an award by February 2013.

NMCI has been in place since 2000, when it was won by EDS Corp., which HP later acquired. NGEN, however, will be a five-year contract, with a one-year base and four one year options.

NGEN also is being evaluated as a low price/technically acceptable proposal. The Navy has said they see no services in the contract that they would be willing to pay a premium for.

About the Author

Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.

Reader Comments

Wed, Jul 25, 2012

"low price/technically acceptable", then the real Navy starts to live with it and it no longer is "Technically Acceptable", so here come the change orders. Will this contract follow NMCI Management, when the Contractor had a problem during their first few years, they didn't hire a technical specialist to fix the problem, they hired another Retired Admiral to play golf with their Active Duty Buddies!

Tue, Jul 24, 2012 DoD Reformer Washington DC

Here is more evidence that Navy has no clue on how to manage IT programs. The cost overruns, sole source extensions, bloated program office (with over 200 consultants) has cost the tax payer billions in avoidable waste. All the while, the DON CIO issues more and more unless policy that only increases paperwork and now focusing on auditing any IT project over $500k. I can understand why the USMC has chosen to go their own way. Unfortunately, no one in the Navy chain of command is willing or able to hold its IT leadership accountable for outcomes. Navy IT is broker, and those who have moved up into higher positions at DOD CIO and DCMO are to blame for creating a culture of incompetence.

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