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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