recommended reading

Navy considers price critical in Next-Generation Network contract

The Navy has set a simple standard for award of its Next-Generation Network: price. That's what top project officials told a packed industry briefing in Washington on Friday.

Capt. Shawn Hendricks, manager of the Naval Enterprise Networks Program Office, which manages NGEN, estimated the new network will cost $2 billion a year, or $10 billion over five years -- double what the Navy spent per year on its previous large-scale network contract, the Navy Marine Corps Intranet, originally awarded to EDS in 2000. The company is now HP Enterprise Services.

In this era of declining budgets, Hendricks said bidders should come in with offers that drive down costs through reduced staffing requirements and rely on governmentwide software license contract vehicles.

At the same time, he wants contractors to keep pace with technology innovation through periodic contract refreshments. Based on responses from industry to date on draft proposal requests, Hendricks said, there are fewer than five potential bidders that can meet the criteria set out in those drafts.

Hendricks said he believed even that small pool of bidders will generate enough competition to drive down costs, with more competition during the life of the contact if the Navy awards NGEN to two prime bidders. A former top Navy official, who declined to be identified, said he doubted the Navy would award NGEN to more than one bidder because that would make the contract more complex and unwieldy.

NGEN contracting officer Cmdr. John Windom said, "price is paramount" in the selection process, but noted the NGEN contractor will be able to receive unspecified award fees for technical innovation.

The Navy also intends to ensure it receives the best prices for information technology services during the life of the NGEN contract by checking the competitive landscape semiannually, Windom said.

Hendricks described NGEN as the largest federal IT contract that he is aware of today, designed to provide commercial applications and network connections to more than 400,000 computers and more than 750,000 Navy and Marine end users. The NGEN contractor will provide data centers and base and local area networks, but not long-distance networks, which the Defense Information Systems Agency will provide.

The Navy plans a tight schedule for the contract, with a final request for proposals due Dec. 21 and contract award in December 2012. The new network must be ready for operation on April 30, 2014, when the NMCI contract ends.

"We don't want the lights to go out," Hendricks said.

Threatwatch Alert

Thousands of cyber attacks occur each day

See the latest threats

JOIN THE DISCUSSION

Close [ x ] More from Nextgov
 
 

Thank you for subscribing to newsletters from Nextgov.com.
We think these reports might interest you:

  • Modernizing IT for Mission Success

    Surveying Federal and Defense Leaders on Priorities and Challenges at the Tactical Edge

    Download
  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

    Download
  • Effective Ransomware Response

    This whitepaper provides an overview and understanding of ransomware and how to successfully combat it.

    Download
  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

    Download
  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

    Download

When you download a report, your information may be shared with the underwriters of that document.