The Navy said Wednesday it had awarded one of the largest IT contracts in government history to Reston, Virginia-based contractor Leidos, one of three large firms who bid on the largest portion of the latest Next Generation Enterprise Network (NGEN) contract.
The award is worth up to $7.7 billion over the next eight years, more than double the value of the previous iteration of the NGEN contract. The former HP Enterprise Services — now Perspecta — won that $3.5 billion award in 2013, but has since been granted several extensions while the Navy worked out the details of its latest competition.
The award the Navy announced Wednesday is for only a portion of the overall NGEN effort — the latest iteration of which the Navy refers to as “NGEN-R.” The work Leidos will perform is known as Service Management, Integration and Transport (SMIT).
“This contract will enable the digital modernization of our enterprise networks, which are the foundation for the Department of Navy business,” James Geurts, the assistant secretary of the Navy for research, development and acquisition said in a statement Wednesday evening. “Our future enterprise networks will provide sailors, Marines and our civilian workforce the tools they need to be more efficient at increasing naval capabilities, and further empowering our Navy-Marine Corps team to compete and win.”
Under the SMIT portion of NGEN-R, Leidos will be in charge of delivering the core backbone of the Navy-Marine Corps Intranet, including cybersecurity services, network operations, service desk and data transport.
The Navy awarded the smaller portion of NGEN-R to HP last October. That separate award calls for the company to provide laptops, desktops and other computing devices as a service.
It calls for the company to upgrade 400,000 “seats” with new IT equipment over the next three years, and is valued at $358 million over that timeframe. But Navy officials said it could be worth nearly $1.4 billion over the next decade if the government exercises all of its contract options.