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Defense—San Diego will be a hub for the $6.9 billion unified Navy-Marine Corps Intranet



Navy-Marine Intranet Program Worth Nearly

$7 Billion, 1,800 Jobs

San Diego will feel the effects of a multibillion-dollar contract to create a single, unified Navy-Marine Corps Intranet system spanning half the world.

While the local impact will be sizable, it is still too early to put into hard numbers, said representatives of both the Space and Naval Warfare Systems Command (Spawar), which will administer the contract, and the winning lead contractor, Electronic Data Systems Corp. of Plano, Texas.

The contract is valued at more than $4.1 billion for five years. With an additional three-year option, the contract is valued at more than $6.9 billion. Rick Rosenburg, EDS’ program executive for the project, said he expects the Navy to increase those minimum amounts.

The Navy announced Oct. 6 that EDS received the contract for the unified system connecting land-based Navy and Marine Corps installations from Guam to Iceland, and throughout the United States. Currently the services use several different computer systems which are at times incompatible.

Spawar will increase its budget by roughly 25 percent because of the contract, said Lt. Cmdr. Greg Geisen, a spokesman for the command, noting it will add $1.2 billion to his organization’s budget, which was $4.1 billion last year.

Rosenburg said San Diego will have a large concentration of people working on the Navy-Marine Corps Intranet.

“San Diego is going to be a hub, if you will,” said Rosenburg, the head operations person for the project, who will relocate here.

San Diego will house EDS’ program management office for the project. It will be one of six network operations centers and will also house a call center and help desk. Rosenburg added that San Diego would be home to the program’s technology integration and fusion lab.

He confirmed EDS is looking for building space in the area, including space in government facilities.

Between the network operations center, the help desk and the call center, San Diego will host some 1,200 to 1,800 EDS employees, Rosenburg said.

Some 40 percent of the Navy-Marine Corps Intranet contract work will go to small businesses and minority- and women-owned businesses. EDS officials could not say how that would specifically affect San Diego.

Spawar will place orders for equipment, oversee installation, then follow-up to see how the systems work, said Geisen.

Naval Air Systems Command and other elements of the naval aviation community will be the first organizations to implement the intranet this quarter.

The EDS-led contracting team also includes Raytheon Co., MCI WorldCom, WAM!NET, Dell, Cisco and Microsoft.

Raytheon will provide security for the network. With both the Navy’s and the contractor’s program offices here, the company will be doing some of the work locally, said Raytheon officials.

It’s unclear whether the company will need more people in San Diego for the project, said Barbara Johnson, vice president of Raytheon’s secure networks business area.

The Navy-Marine Corps Intranet is a land-based counterpart to the Navy’s new, shipboard Information Technology for the 21st Century (IT-21) system, according to Navy officials.

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