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To: chic_hearne who wrote (26036)	10/9/2000 4:16:35 PM
From: Ilaine	Respond to of 436258

Defense News is reporting two things that may be of interest - 1) the contract won't be implemented until 2002 (Navy and 2003 (Marines); 2)EDS must outsource at least 35% to small businesses. Regardless, it's a nice piece of cake. U.S. Navy's $6.9 Billion NMCI Project By TOM CANAHUATE Defensenews.com Staff Writer WASHINGTON — Electronic Data Systems (EDS) Corp., Plano, Texas, won the Navy Marine Corps Intranet (NMCI) project valued at $6.9 billion for a five-year contract, with a three-year follow-on option valued at $3 billion. The U.S. Navy announced the decision Oct. 6 after developing an NMCI transition schedule acceptable to the U.S. Congress, according to Navy Secretary Richard Danzig, who explained during an Oct. 6 Pentagon press conference on NMCI that the Navy delayed announcing the contract winner until it obtained the necessary support from Congress. As part of the schedule worked out with Congress, implementation of NMCI at Navy aviation depots and maintenance shipyards will be delayed by one year to 2002, said Danzig. The value of the contract could actually go higher, said Joseph Cipriano, NMCI's program manager, because the initial contract does not include voice telephone services. Cipriano said during the press conference that as NMCI is phased in gradually at the various Navy and Marine Corps commands, voice telephone services will be added through follow-on contracts. While he would not place a value on total NMCI services, other Navy officials said NMCI potentially could be worth as much as $16 billion. In other contract details, Danzig said it requires EDS to outsource 35 percent of the work to small businesses, many of whom are already providing communication and information services to various Navy and Marine Corps facilities. “I see NMCI as the gateway to transformation for us,” said Adm. Vern Clark, chief of naval operations. “It will revolutionize the way we do things in the Navy.” Gen. James Jones, commandant of the Marine Corps, said he views NMCI as a tool to bring the Navy and Marine Corps closer together. Under the NMCI schedule, the Marine Corps will begin implementing NMCI in 2003. Jones said he received assurances from Danzig that funds for NMCI will not come out of the Marine Corps budget for modernization or procurement.