Navy Says NGEN to Cost $500M Less Per Year Than Previously Advertised

The U.S. Navy has lowered its cost projections for its Next-Generation Enterprise Network to less than $1.5 billion per year, $500 million less than the $2 billion figure provided last week, according to a report from NextGov.

The Navy’s current network, the Navy Marine Corps Intranet, is slated to continue operating through 2015 under a $3.4 billion contract awarded to HP (NYSE: HPQ).

Capt. Shawn Hendricks, manager of the program office overseeing NGEN, said the new network “will generate savings relative to historical program spending,” according to the report.

“Historical NMCI costs, which include all NMCI contract expenses and other program costs, are approximately $1.5 billion per year,” Hendricks said in an e-mail to NextGov. “All program office cost estimates project that spending on NGEN will be less than historical NMCI costs.”

Hendricks did not give a reason for the lower cost estimate.

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