The Insider

Navy awards Perspecta NGEN extension

By Justin Katz  
September 6, 2018 at 9:11 AM

The Navy yesterday awarded Perspecta a contract worth up to $787 million to extend the existing Next Generation Enterprise Network contract.

"This modification will add a new option period that will extend the potential ordering period by 12 months from Oct. 1, 2018 through Sept. 30, 2019," according to a Defense Department release. The existing NGEN contract was set to conclude at the end of this month.

Mac Curtis, chief executive of Perspecta, told analysts last month he anticipated the extension to the NGEN contract, which delivers the Navy-Marine Corps Intranet. Perspecta was formed by combining Vencore with DXC Technology's U.S. public sector business -- the incumbent on the NGEN program -- and KeyPoint Government Solutions.

Perspecta said in a statement today it expects the Navy to also award a contract modification to add an option for an additional eight-month extension.

The Navy's recompetition, NGEN-R, is underway, but has faced delays. NGEN-R will be split into a hardware contract and a services management contract.

Last year, the service announced it had delayed by five months the awards. That schedule dictated the awards be made this November and December.

Earlier this year, the Navy announced its intent to release the final request for proposals around the end of July, but that RFP has still not been published.

"We are in the process of finalizing the RFP documents for release in the near future," Capt. Ben McNeal, Naval Enterprise Networks program manager, said in a Sept. 5 statement.

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