Navy to privatize its far-flung computer network

Associated Press

WASHINGTON — Leading the military into a new era of the Information Age, the Navy on Friday awarded a contract potentially worth $9 billion to link hundreds of separate Navy and Marine Corps computer networks into a single, seamless system designed to be less vulnerable to cyber attacks ashore and at sea.

The contract, which Navy Secretary Richard Danzig called the largest such contract ever awarded by the government, was awarded to Electronic Data Systems Corp. of Plano, Texas. It could cost some Navy civilian information technology specialists their jobs, officials said.

This marks the first time in the computer age that a branch of the military has turned over to a private company the responsibility and risk of operating and maintaining its entire network of computer systems.

The new information system, known as an intranet, is seen by the Defense Department — whose thousands of computer networks are the largest and most far-flung in the world — as a model for the military as a whole. The Navy-Marine intranet, for example, would enable an aircraft maintenance worker in Japan to pinpoint the availability of a plane part anywhere in the Navy or Marine Corps system or contact the part manufacturer with the click of a button.

The new system is expected to be fully operational by June 2003.

The contract is for a guaranteed minimum of $4.1 billion over five years, although Danzig said that probably will be about $6 billion. The Navy can extend the contract for another three years for a minimum of $2.8 billion.

EDS was chosen over three other finalists for the contract: General Dynamics Corp., IBM Corp. and Computer Sciences Corp.

EDS officials said major subcontractors on the project are Raytheon, MCI WorldCom, Cisco, WAM!NET, Dell and Microsoft. EDS was founded in 1962 by Ross Perot, the Texas billionaire and former presidential candidate who is a Naval Academy graduate and served in the Navy for four years. Perot sold EDS in 1984.

The contractors will be responsible for providing, operating and maintaining all the computers, network servers and other elements of the system.

Danzig said some Navy civilian workers who are information system specialists will have to take new jobs. He said they number in the hundreds; a Navy report to Congress in June said 1,938 people would be affected and that 329 of them would face "involuntary separation," which is military lingo for layoffs.

Some in Congress have questioned whether the change will cost too many jobs among the Navy Department civilians who maintain the existing computer networks, but Danzig said Friday that he believes he has allayed these concerns.

Danzig said the Navy will actually be saving money by having the work done by a private company. He estimated that maintaining the existing Navy and Marine Corps computer networks is now costing $1.6 billion a year, or $400 million a year more than the contract will cost.

Copyright ©2000 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Talk to us

More in Local News

Funko mascots Freddy Funko roll past on a conveyor belt in the Pop! Factory of the company's new flagship store on Aug. 18, 2017.  (Dan Bates / The Herald)
Lawsuit: Funko misled investors about Arizona move

A shareholder claims Funko’s decision to relocate its distribution center from Everett to Arizona was “disastrous.”

Lynnwood
1 stabbed at apartment in Lynnwood

The man, 26, was taken to an Everett hospital with “serious injuries.”

A firefighting helicopter carries a bucket of water from a nearby river to the Bolt Creek Fire on Saturday, Sep. 10, 2022, on U.S. Highway 2 near Index, Washington. (Ryan Berry / The Herald)
Red flag fire warning issued west of Cascades

There are “critical fire weather” conditions due to humidity and wind in the Cascades, according to the National Weather Service.

A house fire damaged two homes around 1:30 a.m. Tuesday, June 6, 2023 in Marysville, Washington. (Photo provided by Marysville Fire District)
Fire burns 2 homes in Marysville, killing 2 dogs

Firefighters responded to a report of a fire north of Lakewood Crossing early Tuesday, finding two houses engulfed in flames.

Logo for news use featuring the municipality of Mountlake Terrace in Snohomish County, Washington. 220118
Mountlake Terrace eyes one-time projects for $2.4M in federal funds

Staff recommended $750,000 for a new roof and HVAC at the library, $250,000 toward a nonprofit facility in Lynnwood and more.

The Snohomish River turns along the edge of the Bob Heirman Wildlife Preserve at Thomas’ Eddy on Wednesday, May 3, 2023 in Snohomish, Washington. (Olivia Vanni / The Herald)
To build a healthier Snohomish River, more log jams

About $2.8M in grants will help engineer log jams, tear down levees and promote salmon restoration at Bob Heirman Wildlife Preserve.

Dave "Bronco" Erickson stands next to the pink-and-purple 1991 Subaru Justy hatchback “Pork Chop Express” car that he is seeking to re-home for $500. The car has been on Whidbey Island for years, mainly as yard art. (Andrea Brown / The Herald)
For sale: Whidbey’s fabled ‘Pork Chop Express’ gets great smileage

Asking price is $500 for the 1991 Subaru Justy, a three-cylinder econobox with 65K miles and a transmission as rare as hen’s teeth.

Ciscoe Morris, a longtime horticulturist and gardening expert, will speak at Sorticulture. (Photo provided by Sorticulture)
Get your Sorticulture on: Garden festival returns to downtown Everett

It’s a chance to shop, dance, get gardening tips, throw an axe and look through a big kaleidoscope. Admission is free.

Marysville
Marysville resident sentenced to 15 years for fentanyl operation

Jose Eduardo Garnica received a shipment from China labeled “Furniture Parts.” It had fentanyl-manufacturing parts.

Most Read