GAO testimony criticizes Navy's plan for intranet

GAO testimony criticizes Navy's plan for intranet

By Bill Murray

GCN Staff

MARCH 9—The Navy's pending $10 billion outsourcing contract for voice, video and data services is "unnecessarily risky," two General Accounting Office officials told a congressional subcommitte yesterday.

In testimony before the House Armed Services Subcommittee on Military Readiness and Military Research and Development, the GAO officials said the Navy-Marine Corps Intranet lacks a complete business case analysis and a report on program alternatives, has potential management problems, and has not been tested on a smaller scale.

GAO officials criticized Navy and Office of the Secretary of Defense officials for failing to provide an "adequate explanation" for why they are not using DOD Directive 5000.1 and Regulation 5000.2R to guide the procurement. The directives spell out mandatory policy and procedures for managing major automated information systems contracts that have at least $360 million in funding. The Navy failed to make a complete alternative analysis for the NMCI procurement prior to receiving bids on Feb. 14, according to a GAO report presented during testimony.

Navy officials also need to determine decisively how they will fund and manage NMCI prior to its June 1 award, according to the testimony delivered by Allen Li, a GAO associate national security and international affairs division director, and Jack L. Brock Jr., an accounting and information management division director.

They said Navy officials might also be "significantly underestimating total program costs," in part because they have not determined how many of their 600 mission critical and 1,400 mission support systems will need additional integration to work with NMCI.

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