NMCI payment deferred

NMCI payment deferred

The Navy will pay Electronic Data Systems Corp. $128 million less in fiscal 2002 than was stated in the original task order for funding the Navy-Marine Corps Intranet.

A contract modification, signed this week, amends the task order funds from $728 million to $600 million in fiscal 2002, which starts on Monday. The change resulted from a testing agreement signed Sept. 5 by the Defense Department and the Navy. The difference will be shifted into the fiscal 2003 budget, officials said.

'The important point is, it still is a $6.9 billion contract,' said Chris Grey, an EDS spokesman. 'This is simply shifting funds from fiscal 2002 to fiscal 2003, and it was done in true partnership and the best interest of the Navy.'

EDS has currently assumed management of about 42,000 seats. Under the testing agreement, the Navy will order an additional 20,000 seats this fall. After contract testing, the Navy expects to order another 100,000 seats by early next year.

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