The U.S. Navy has reduced the projected $10 billion cost for its Next Generation Enterprise Network contract to between $4.5 and $5.4 billion over five years, Bob Brewin reports on Nextgov.
Capt. Shawn Hendricks, NGEN program manager, told reporters on Friday the network will cost between $900 million and $1.07 billion per year, Brewin reported.
The Navy plans to award the contract in February 2013 but will structure the contract so the competition does not end with contract award.
NGEN has been broken up into enterprise services and transport services, allowing for separate contracts for each piece of the system or ability to combine them into a single contract award, according to Brewin.
Brewin reports the new contract cost estimate puts NGEN in the same range as the cost of the Navy Marine Corps Intranet program, currently managed by HP Enterprise Services.
HP and teammates AT&T, IBM, Northrop Grumman Corp. and Lockheed Martin Corp. are competing against a team comprised of Computer Sciences Corp., General Dynamics Harris Corp. and Verizon.
