United States Department of Defense United States Department of Defense


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No: 617-00
October 06, 2000


The Information Strike Force, led by Electronic Data Systems Corporation (EDS), Plano, Texas, as the prime contractor, is being competitively awarded a $6,938,817,954 multi-year firm-fixed-price (with performance incentives) contract for the Navy-Marine Corps Intranet (NMCI). The NMCI will provide secure, comprehensive, end-to-end information services through a common computing and communications environment that supports the Department of the Navy's core business, scientific, research, computational, and warfighting activities. It will enhance interoperability and information exchange capability for Navy and Marine Corps users, as well as garrison and deployed forces. The transition from the current operational environment to the NMCI enhanced environment will occur without impact to existing operations. The NMCI will be the sole intranet of the Department of the Navy. The NMCI service area includes the continental United States, Alaska, Hawaii, Guantanamo Bay (Cuba), Puerto Rico, and Iceland. Additionally, the service area may be expanded to outside the continental United States sites. The first set of orders against the contract is being placed with a total obligated value of $181,648,081. EDS' major subcontractors for NMCI are Raytheon, MCI WorldCom, Cisco, WAM!NET, Dell, and Microsoft. In addition, EDS will subcontract 40 percent of the total contract value to small business concerns, with 10 percent of the 40 percent requirement at the first tier. This exceeds the Navy's requirement of 35 percent. A full and open competition was held for this procurement, and four offerors submitted proposals. NMCI services will be provided for five program years, with the period of performance starting at the effective date of award. The contract also includes one option for three years. The guaranteed minimum for the basic period is $4,119,790,353; the guaranteed minimum for the three-year option period is $2,819,027,601, bringing the total contract value to $6,938,817,954. That is, the Department of the Navy must order services in those amounts in order to fulfill its obligation. The Naval Sea Systems Command, Arlington, Va., is the contracting activity (N00024-00-D-6000).

Chesapeake Sciences Corp., Millersville, Md., is being awarded a $9,531,749 cost-plus-fixed-fee modification to provide additional level-of-effort services and support for Acoustic Towed System Upgrade Programs for the Program Executive Office-Submarines, PMS 435, PMS 401, PEO (USW), PMS 411, PMS 415, Spare and Naval Warfare Systems Command, (PMW 182), and the Advanced Systems and Technology Office. Work will be performed in Millersville, Md., and is expected to be completed by October 2001. Contract funds will not expire at the end of the current fiscal year. This effort is being awarded under the Small Business Innovative Research Program (Phase III). The Naval Sea Systems Command, Arlington, Va., is the contracting activity (N00024-98-C-6203).

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