Navy set to name winner, runner-up of NMCI crown

Navy set to name winner, runner-up of NMCI crown

By Tony Lee Orr
GCN Staff

Oct. 6'When the Navy announces the winner of the Navy-Marine Corps Intranet contract later today, one of four companies vying for the $6 billion 5-year contract will walk away the winner.

But a second company will be tagged to take over if the winner is unable to fulfill the contract, which could be worth $9 billion if the three option years are exercised, said Navy Undersecretary Richard Danzig.

CSC of El Segundo, Calif.; EDS of Plano, Texas; General Dynamics Corp. of Falls Church, Va.; and IBM all stand to walk away with what would be the biggest outsourcing deal in government history. If Navy officials choose to exercise every option to add to the contract, 35 percent of which will be filled by subcontractors, the deal could be worth $16 billion, officials said.

The new intranet will help the branch manage systems security, Danzig said, because it is easier for security specialists to monitor and manage one central system rather than ride shotgun over hundreds of potential problem areas.

The contract will, in essence, sell the Navy's existing intranet infrastructure to the winning company and allow that company to own and operate the Navy and Marine Corps intranet, Danzig said.

The move will pare down the Navy's more than 200 significant networks to one, said Joseph R. Cipriano, the branch's program executive officer for IT and IT enterprise acquisition manager.

Danzig said the move to outsource the Navy's internal communications network is right because it ensures interoperability, lets the service control the integrity and security of its information, lets the Navy refresh its technology more rapidly, saves money and meets IT Management Reform Act mandates.


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