Navy Kicks Off $7B Intranet Project.

• Jurisdiction: United States
• Date: 01 November 2000
• Author: Kutner, Joshua A.
• Published date: 01 November 2000
• Author: Kutner, Joshua A.

The U.S. Navy moved a step closer toward its goal of having a service-wide intranet, operated entirely by the private sector. The project is known as the Navy-Marine Corps Intranet, or simply NMCI. The intranet will act as an information portal or exchange, providing data and video and voice communications for some 360,000 users. If successful, it will consolidate many disparate computer networks into a single information grid.

NMCI will be run by Electronic Data Systems (EDS) Corporation, of Plano, Texas, in what has been labeled the largest government information technology contract to dare. EDS received a five-year, $6.9 billion contract--$4.1 billion initially, with an additional three-year option--to meet security and quality-of-service requirements, train Navy-Marine personnel and maintain and operate the system infrastructure. Thus the Navy is buying a service, which officials compared to buying a utility, such as electricity or water. NMCI will replace the Navy's existing shore-based command data networks, officials said.

The Navy investigated more than 100 potential contractors in determining who would best fit its needs, said officials.

The EDS-led contracting team--The Information Strike Force--includes Raytheon Company, WorldCom and WAM!NET. In addition, 40 percent of the work will be subcontracted to small businesses, said officials.

Consolidation

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