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Navy says new network will cost $500 million a year less than previously estimated

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November 5, 2011
FedCyber Wire, Financial, Solution Providers, Spending
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The Navy has lowered cost projections for its Next-Generation Enterprise Network to below $1.5 billion a year from an estimated annual $2 billion figure provided last week at a media briefing in Washington.

The current network, the Navy Marine Corps Intranet, cost $1 billion a year under an original 10-year contract awarded in 2000 to EDS, now HP Enterprise Services. In July 2010, the Navy awarded HP a $3.4 billion continuity of services contract to keep NMCI in operation through 2015.

The new network “will generate savings relative to historical program spending,” said Capt. Shawn Hendricks, manager of the Naval Enterprise Networks program office, which oversees NGEN.

via Nextgov, continued here.