Air Force Adding $700M to NetCents Contract Ceiling


The U.S. Air Force wants to increase the ceiling for its information technology contract by $700 million before it expires in the fall, Washington Technology reports.

The Air Force wants to increase the Network Centric Solutions’ contract ceiling value to account for potential risks prior to awarding the follow on NetCents II contract.

Firms including Harris Corp. (NYSE: HRS), Lockheed Martin Corp. (NYSE: LMT), Northrop Grumman Corp.(NYSE: NOC), Booz Allen Hamilton (NYSE: BAH) and General Dynamics (NYSE: GD) hold spots on the current NetCents contract.

The Air Force’s notice of intent said that without the ceiling increase, solutions being rolled out could lead to non-standards-based contracts that would conflict with Air Force and Defense Department policy.

NetCents originally had a $9 billion ceiling and was scheduled to expire Sept. 10, 2011 but received a one-year extension.

As of March, a reported cumulative value of $8.7 billion was ordered against the contract.

The Air Force expects another $1 billion to be ordered on NetCents expects to award NetCents II before the original contract expires Sept. 10.

At the end of March, the Air Force indicated it was on track to finish awarding contracts under the $24 billion NetCents II contract vehicle. 

CACI International Inc. (NYSE: CACI) won a position on NetCents II in February 2011 for engineering integration and service management support.

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