Navy streamlines its intranet contract

The Navy has streamlined its contract with Texas-based defense contractor EDS to develop the Navy Marine Corps Intranet, program officials announced this week.

The move essentially will consolidate NMCI contract performance measurements, officials said. The Navy will dramatically reduce the number of service level agreements and their associated performance categories, which are some of the measurements used to measure a contractor's performance. According to NMCI officials, the new focus will be on measuring end results instead of the numerous steps that lead to those results.

"We did not do this just as the NMCI office. We had the users involved," said Rear Adm. James Godwin, the newly installed top official at the intranet program. Godwin has been working at NMCI for about a month.

NMCI is a huge, secure computer system designed to connect all Navy and Marine Corps personnel. EDS is developing the system, which could end up costing the Navy more than $8 billion by the time all users are connected. More than 350,000 Navy, Marine Corps and civilian personnel could end up being connected to the network, making it the world's largest intranet.

The system has been plagued with a slower than expected rollout and technical problems. NMCI officials have maintained that the problems are to be expected with the development and delivery of a massive computer system. Users, however, have complained that their dissatisfaction is ignored and that customer satisfaction numbers have been distorted.

Godwin emphasized that the new performance measurements will focus on "how the end user services are going."

The number of service level agreements was reduced from 44 to seven, according to the Navy. The number of associated performance categories was reduced from 192 to 27. NMCI officials said the contract adjustments will maintain all the standards contained in the original requirements, but also will make the contract more efficient and will provide more relevant results to measure.

The NMCI program office issued a news release this week saying the revised standards will reduce "administrative complexity," will focus "on NMCI program priorities," and will eliminate performance categories that are no longer relevant.

The program office also clarified and defined the criteria for full performance under the NMCI contract.

"Today's announcement culminates months of hard work and negotiations between EDS and the Navy," said Mike Koehler, EDS's client executive for NMCI. "The agreement establishes more clearly defined, measurable and realistic service levels."

Top Navy officials, including Secretary Gordon England, have acknowledged that the network was burdened by high expectations and overly optimistic performance expectations.

On Wednesday, Godwin also addressed lingering questions about the NMCI customer satisfaction survey, the results of which are linked to financial incentives for defense contractor EDS. The NMCI office has refused to release the questions used in the survey, drawing criticism from users and outside experts. Godwin said the program office is reviewing that policy.

He said, however, that the majority of satisfied users do not feel compelled to speak out and much of the criticism directed at NMCI comes from a vocal minority of chronically dissatisfied personnel.

"There are probably people unhappy with the fact that the sun comes up as well," Godwin said.