WASHINGTON (NNS) -- The Navy awarded Hewlett Packard Enterprise Services (HPES) a firm-fixed-price award fee contract for the Next Generation Enterprise Network (NGEN) June 27.
The amount awarded to HPES, based in Herndon, Va., is $321,689,010. The contract includes four, one-year options, which if exercised, has the potential overall contract value of $3,454,735,513. If all options are exercised, work will continue through June 2018.
"The NGEN contract represents the next phase of Navy Marine Corps Intranet (NMCI) services, providing continued IT operational support to our Sailors and Marines, and creates a path toward aligning with the DoD's JIE", Assistant Secretary of the Navy for Research, Development and Acquisition Sean Stackley said. "The NGEN acquisition approach will allow sustained competition and significant savings for the department."
The Joint Information Environment (JIE) refers to an initiative to increase operational efficiency, enhance network security and cost savings through reduced infrastructure and manpower, achieved through the convergence of the Department of Defense's multiple enterprise networks into a common global network.
Initially, network capabilities provided under the NGEN contract will remain the same as the services provided by the NMCI contract in 2010. However, the segmented contract structure positions the DON to re-compete subsets of NMCI's network and computing services -- such as hardware, software and transport services -- when it makes sense to lower cost or provide improved system performance.
NGEN will increase government operational and design control of the network and requisite Information Assurance enhancements to meet evolving security requirements. Other benefits include better visibility into costs, the potential for increased industry competition, and the potential for enhanced cost efficiencies and improved innovation.
NGEN is the acquisition approach and contract vehicle that will provide enterprise network services originally consolidated in 2000 under the NMCI contract.
The NGEN acquisition approach will allow NMCI to transition from a monolithic model to a segmented business model that allows for periodic competition of segmented services. Under the current contract, all network services were competed as a single package.
NMCI is one of the largest intranets in the world providing end-to-end secure IT services to more than 400,000 computers and 800,000 users across 2,500 locations that vary from major bases to single user locations.
The transition of Navy network services to the NGEN phase of NMCI will begin immediately and is expected to take up to 13 months. The Navy's network services will be provided under a government-owned, contractor-operated model.
The Marine Corps has taken a different approach, recently completing the transition of services from HPES to their own personnel under a government-owned, government operated model with contract support.
HPES has been the prime vendor of the DON's network services since NMCI's inception in 2000.
The NGEN contract is a Federal Acquisition Regulation Part 15 contract, and was awarded based on a lowest-price-technically-acceptable (LPTA) process. An LPTA approach is appropriate when best value is expected to result from the selection of a technically acceptable proposal with the lowest evaluated price.
The HPES NGEN team includes AT&T Government Solutions, Inc. based in Vienna, Va.; International Business Machines (IBM) Global Business Services ‒ Federal based in Bethesda, Md.; Lockheed Martin Services, Inc. based in Gaithersburg, Md.; and Northrop Grumman Systems Corporation based in McLean, Va.