Panel votes for NMCI extension

Fiscal 2003 Defense authorization bill

Just as Pentagon officials were giving the green light to proceed with the Navy Marine Corps Intranet, the House Armed Services Committee approved a bill that would allow the Navy to extend the NMCI contract by two years.

The Navy has been pushing for permission to extend the contract beyond its existing five-year base period so that the Navy would have time to use NMCI before officials are forced to consider entering into the contract's three one-year option periods.

By law, government contracts cannot last longer than five years. Therefore, the Navy sought permission from Congress to extend the contract. A provision of the fiscal 2003 Defense authorization bill, H.R. 4546 — which was approved on a 57 to 1 vote by the House Armed Services Committee May 1 — would allow the Navy to extend the contract for two years.

EDS officials have said that they support the idea. EDS is the lead vendor on the Navy's effort to outsource its shore-based information technology infrastructure. It is unclear, however, how the contract extension would affect NMCI's $6.9 billion cost.

NMCI is a five-year contract valued at $4.1 billion, with an additional three-year option that brings the total value of the contract to $6.9 billion.

NMCI officials have said that the idea behind the extension is for the Navy to start the five-year contract period to coincide approximately with the Pentagon's Milestone One approval.

That approval came May 3. Otherwise, the Navy would have to make a decision about the three one-year options about two years after it gets all of NMCI's seats rolled out. NMCI director Rear Adm. Charles Munns has said the target date for that is December 2003.

The contract extension would enable the Navy to use the NMCI network for more than two years before having to address that issue.

The Defense authorization bill next goes to the full House of Representatives for consideration.