Navy Considers Price Critical in Next-Generation Network Contract

October 28, 2011

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. 

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