NGEN Delayed, Again

By Lee Hudson / May 29, 2013 at 5:41 PM

The Navy announced today it is delaying the contract award for the multibillion dollar Next-Generation Enterprise Network transport and enterprise services because the service has re-entered into discussions with bidders.

Rather than award the contract on May 31, as previously expected, the Navy will likely make the award on June 30, according to the service's statement.

In January, the Navy extended the award deadline from Feb. 12 to May 31, Inside the Navy reported.

“The Government has re-entered into discussions with those offerors determined to be within the competitive range,” today's statement reads. “In support of this re-entry into discussions, the Government is modifying its estimated contract award date . . . . Again, this update in no way implies that new offers/offerors are being solicited.”

Until the NGEN contract is signed and the land-based network comes online, the Navy has had to extend the life of the legacy Navy-Marine Corps Intranet via a continuity of services contract with Hewlett-Packard -- raising the cost of that contract by about $1.5 billion, ITN reported in September 2012.

The NGEN program, worth $5.4 billion, will securely connect 800,000 Marines, sailors and civilians. The contract is divided into two parts: enterprise services and transport services. The enterprise services portion makes up two-thirds of the contract with the transport services accounting for the other third. The program office could award two separate contracts or award one contract.