WASHINGTON — The Navy for a second time awarded a contract modification for continued IT services under its Next Generation Enterprise Network program, currently in competition for a follow-on agreement.
The extension was awarded Nov. 9 to incumbent provider Perspecta, which after a merger holds the contract originally awarded to HP Enterprise Services.
The indefinite delivery/indefinite quantity contract has a maximum value of nearly $486 million dollars, and adds a new option period that will extend the potential ordering period by eight months from Oct. 1, 2019, through May 31, 2020.
In early September, Perspecta was awarded as similar contract worth $787 million that added an option period extending the potential ordering period by 12 months from October 1, 2018, through September 30, 2019. Work on the contract will be performed in the United States, Europe, Guam, Korea and Japan.
With contracts set to be awarded in late 2018, industry members are beginning to partner up to take on management of Navy and Marine Corps IT infrastructure.
Under the NGEN contract, Perspecta operates the Navy Marine Corps Intranet and provides IT and network security services for the Navy and the Marine Corps. The Navy is preparing for a broad effort to modernize and improve IT services, and has been working toward issuing Next Generation Enterprise Network Re-compete (NGEN-R) contracts.
The NGEN-R contract is divided into two segments: an end user hardware (EUHW) segment, and a service management, integration and transport (SMIT) segment. The EUHW segment focuses on hardware as a service and hardware for purchase, such as cellphones, laptops and tablets. SMIT prioritizes network services such as system integration, software core build services and computer network defense.
The Navy issued requests for proposals for the EUHW segment on September 18, though RFPs were originally expected over the summer. The deadline for proposals is November 19.
The latest extension to the NGEN contract, designed to give the Navy more flexibility in cloud and IT buying, follows a late September announcement on a separate Navy cloud procurement. The Navy awarded CSRA LLC, a General Dynamics Information Technology company, a blanket purchase agreement for commercial cloud services. The one-year base agreement comes with four additional one-year options which, if exercised, total nearly $96 million.