Announces Award of Next Generation Enterprise Network Contract
Date: 6/27/2013 5:14:00 PM
Defense Media Activity-Navy
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
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
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
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
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,