Navy, DOD agree on NMCI testing

The Navy and the Defense Department have all but signed off on a compromise agreement to allow the service to move forward with the Navy Marine Corps Intranet and still address the Pentagon's concerns about testing.

The agreement, outlined in an acquisition decision memorandum, would likely reduce the amount of money that NMCI contractor Electronic Data Systems Corp. would receive in fiscal 2002, said Navy and Marine Corps officials familiar with the talks. The change ultimately would require a contract modification.

Navy officials would not say exactly how much EDS would be paid, but it would be less than the $728 million laid out in the original contract.

The new deal creates a step-by-step approach, allowing the Navy to move forward with NMCI but designating specific points along the way at which the Pentagon will review testing results before the project can move along.

"This is taking the testing approach that we wanted to do and the oversight approach they wanted to do," a senior Navy official said Aug. 28.

An EDS spokesman said that he could not comment extensively until the documents have been signed, but he noted that the NMCI contract still has a value of $6.9 billion.