Navy renews NMCI contract

Friday - 7/9/2010, 6:31am EDT

By Jason Miller
Executive Editor
Federal News Radio

The day the Navy held its third industry day for the multi-billion dollar NGEN follow-on contract, the service also reupped their current deal with HP.

The Navy plans to keep HP, which bought EDS in May 2008, for as much as another five years under an extension of the Navy Marine Corps Intranet contract that could be worth $3 billion. The service awarded EDS the end-to-end IT services contract in 2000 that was estimated to be worth $6.9 billion over five years.

HP says in a release that the new deal--called a continuity of service contract--lets the Navy transition its end-to-end technology services presently provided under NMCI to the Next Generation Enterprise Network (NGEN) contract. HP says it will minimize the possible risks to the Navy's IT operations and security.

This is the second time the Navy continued NMCI with HP. The first time the Navy added three years and $3 billion with an expiration date of September 2010.

The Navy had hoped to get NGEN awarded by then, but the follow on contract remains in the planning stages.

In fact, the service held a third industry day in Washington Thursday where they announced their acquisition strategy.

The Navy also brought in vendors in March 2009 and September 2008. Additionally, the Navy decided to break out the information assurance functions and held a specific industry day June 23. The Navy expects to issue a request for proposals for cybersecurity services in August.

The Navy has not said when it plans to release the NGEN RFP