The $728 million gamble

Navy's NMCI Options

Continue the strategic pause: Allows full testing of NMCI, but the Navy would have to pay Electronic Data Systems Corp. $728 million in fiscal 2002. If the pause continues, some portion of those funds would be wasted.

Lift the pause: No additional cost or schedule risks beyond those inherent in the project, according to officials at the Center for Naval Analyses.

Limit the pause: NMCI could proceed to some degree while testing continues. The risks to NMCI's schedule depend on the size and timing of the second funding allocation, according to CNA officials.

Terminate the contract: EDS would be entitled to recover up to $84.5 million in additional costs, and it is likely that the vendor would seek to recover all of its costs to date, more than $1 billion. The Navy would also face more costs to rebuild its existing infrastructure.

About the Author

Christopher J. Dorobek is the co-anchor of Federal News Radio’s afternoon drive program, The Daily Debrief with Chris Dorobek and Amy Morris, and the founder, publisher and editor of the DorobekInsider.com, a leading blog for the Federal IT community.

Dorobek joined Federal News Radio in 2008 with 16 years of experience covering government issues with an emphasis on government information technology. Prior to joining Federal News Radio, Dorobek was editor-in-chief of Federal Computer Week, the leading news magazine for government IT decision-makers and the flagship of the 1105 Government Information Group portfolio of publications. As editor-in-chief, Dorobek served as a member of the senior leadership team at 1105 Government Information Group, providing daily editorial direction and management for FCW magazine, FCW.com, Government Health IT and its other editorial products.

Dorobek joined FCW in 2001 as a senior reporter and assumed increasing responsibilities, becoming managing editor and executive editor before being named editor-in-chief in 2006. Prior to joining FCW, Dorobek was a technology reporter at PlanetGov.com, one of the first online community centers for current and former government employees. He also spent five years at Government Computer News, another leading industry publication, covering a variety of federal IT-related issues.

Dorobek is a frequent speaker on issues involving the government IT industry, and has appeared as a frequent contributor to NewsChannel 8’s Federal News Today program. He began his career as a reporter at the Foster’s Daily Democrat, a daily newspaper in Dover, N.H. He is a graduate of the University of Southern California. He lives in Washington, DC.


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