Home / Contract Awards / Navy Says NGEN to Cost $500M Less Per Year Than Previously Advertised

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.

Recent NGEN coverage:

Check Also

Jeff Jacobson

Jeff Jacobson to Become Xerox CEO After Company Splits in Two

Jeff Jacobson, president of Xerox’s (NYSE: XRX) technology business, will transition into the role of …

Raytheon logo

Raytheon to Update Kuwait’s Patriot System Fire Units Under $523M FMS Contract

Raytheon (NYSE: RTN) has acquired a $523 million foreign military sales contract from the U.S. Army to modernize …

Subscribe to our Newsletter
I will subscribe later