HP Gets Another $138 Million to Keep the Old Navy Network Operational

Paul Sakuma/AP file photo

Boost reflects delay in transition to new network.

The total value of the Naval Marine Corps Internet contract has reached $15.7 billion thanks to an extension last Friday to the NMCI bridge contract valued at $138 million.

Electronic Data Systems, now HP Enterprise Services, won the $10 billion NMCI contract in 2000, followed by a $3.4 billion Continuity of Services contract in July 2010 and numerous extensions since then, which pushed the value of the bridge contract up to $5.6 billion.

The Navy last June awarded HP its Next Generation Enterprise Network (NGEN) contract, designed to serve 800,000 Navy and Marine users, but HP could not start work on the new contract until the Government Accountability Office tossed out a protest by Harris last November.

The $138 million bridge contract extension will run from June through September of this year to continue NMCI services for those sites which have not yet transitioned to NGEN, the Navy said – that's unless, in my view, there is yet another extension.

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