Navy increases NMCI contract ceiling by $2.2B

Thursday - 8/2/2012, 7:02pm EDT

The Department of the Navy plans to spend up to $2.2 billion more for support of its Navy Marine Corps Intranet (NMCI).

The DoN's Space and Naval Warfare Systems Command issued a sole-source justification on FedBizOpps.gov late yesterday, detailing its intent to increase the price of Hewlett-Packard's continuity-of-service contract (CoSC).

The total cost for the CoSC could rise to $5.51 billion over five years. The Navy said it would reach the current contract's ceiling of $3.391 billion by September.

Vendors currently are developing proposals for the follow-on to NMCI, called the Next Generation Enterprise Network (NGEN). The Navy released the solicitation for NGEN in May, and recently extended the deadline for bids to Aug. 8.

"The DoN has actively worked to remove barriers to competition including purchasing Government Purpose Rights to HP's NMCI intellectual property, including options to buy HP owned hardware and infrastructure," the notice stated. "These steps have allowed prospective NGEN offerors to gain critical insight into the network architecture and operations, which will promote full and open competition for NGEN."

An email asking the DoN for comment on the extension and whether it would affect the current NGEN acquisition strategy was not immediately returned.

Two teams led by HP and CSC are bidding on the NGEN solicitation that could be worth $4.5 billion over five years.

"There has been no increase to the cost of the Continuity of Service Contract (CoSC) services that could explain this ceiling increase," Bill Toti, a vice president and account executive for HP's Navy and Marine Corps accounts.

This story is part of Federal News Radio's daily DoD Report. For more defense news, click here.

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