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IMMEDIATE RELEASE

Release No: 618-00
October 06, 2000

NAVY-MARINE CORPS ANNOUNCE INTRANET CONTRACT AWARD

Secretary of the Navy Richard Danzig announced today the award of a $ 6,938,817,954 contract to Electronic Data Systems Corp. (EDS) to build and maintain a department-wide Navy-Marine Corps Intranet (NMCI). The NMCI will make the naval service more efficient, more productive and enhance its readiness by providing data, video and voice communications to link shore units and interface with the "Information Technology for the 21st Century" (IT-21) initiative and the Marine Corps Tactical Network (MCTN).

"NMCI will provide a global network architecture to enhance interoperability with shipboard IT-21 and Marine Corps Tactical Network capabilities," said Danzig. "It enhances and enables our sailors, Marines and civilians to increase their productivity and access resources that extend throughout the Navy-Marine Corps team and our nation. But substantial as these benefits are, they are dwarfed by the implications of empowering instantaneous information access throughout the whole Department of the Navy."

The NMCI is an integrated computer network that will replace the numerous existing shore-based command data networks throughout the department. The intranet will provide increased security, worldwide accessibility, and interoperability with other military Services.

The NMCI contract with EDS transitions the department from a government-owned and operated environment to buying a service, much like a utility. NMCI uses recognized IT industry expertise to connect the entire department so that our sailors, Marines and civilians can communicate effectively at a lower budget cost.

Under the five-year contract, EDS will be responsible for meeting security and quality of service requirements, training personnel, and maintaining and operating the network infrastructure that will support about 360,000 users.

Naval Air Systems Command (NAVAIR) and other elements of the naval aviation community will be the first organizations to implement NMCI, in October 2000. After the first quarter of NMCI implementation, there will be a brief pause to assess how NMCI is meeting the performance goals of the contract.

The scope of NMCI includes communication between users within the continental United States, Hawaii, Alaska, Puerto Rico, Iceland and Guantanamo Bay, Cuba. The department plans to have NMCI fully implemented by June 2003.

The Department of the Navy conducted extensive market research and attained valuable input from hundreds of private sector corporations before deciding to select a single prime contractor to provide the Navy and Marine Corps' IT support.

Information about NMCI is available on line at http://www.peo-it.navy.mil/nmci.html (not available).

Media inquiries about the NMCI contract may be addressed to the Navy Office of Information at (703) 697-5342.

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