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Government IT Review - Cynthia L. Webb

Navy-Marine Corps Intranet Project Takes Fresh Flak

By Cynthia L. Webb
washingtonpost.com Staff Writer
Thursday, June 24, 2004; 4:23 PM

Electronic Data Systems's $9 billion contract to build and manage the Navy Marine Corps Intranet has been mired in controversy practically from the start, with the Plano, Texas-based contractor getting blasted by Congress and the Pentagon for technology glitches, blown budgets and missed deadlines.

This week brought fresh criticism from the officer in charge of the Marine Corps Combat Development Command: "I believe that EDS was not prepared to implement the contract. Whether it was due to not understanding the process or lack of internal oversight, it has been rocky and problematic," Lt. Gen. Edward Hanlon Jr. said Tuesday at the NMCI Industry Symposium in New Orleans, as quoted by Government Computer News. GCN's piece noted that Hanlon "partially blamed lead contractor EDS Corp. for what he called a lack of preparedness in undertaking the development and management of the largest IT seat management project in the world."

____Gov't IT Review____
This weekly feature surveys top government IT-related news -- involving all levels of government, from the federal to state and local, and international news. It is designed to give readers a primer on current trends and developments affecting the industry's major and interesting players, surveying news headlines from around the world. Washingtonpost.com's Cynthia L. Webb pens the feature.
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_____Review Archive_____
Contracting Riches for Nation's Capital (washingtonpost.com, Aug 20, 2004)
Wheels of Fortune (washingtonpost.com, Aug 5, 2004)
IT Clouds Over the Sunshine State (washingtonpost.com, Jul 30, 2004)
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_____Government IT News_____
BearingPoint to Help Navy Improve Finance Reports (The Washington Post, May 30, 2005)
General Dynamics Unit Gets More Funds for Robotics (The Washington Post, May 16, 2005)
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"It is not going as smoothly as we hoped and expected," Hanlon told the gathering, according to GovExec.com. "I believe that EDS was not prepared to handle the implementation." Tops on his complaint list? Poor connectivity to the network, slow delivery of services and other glitches, according to the article.

The network computer plan – often referred to by the acronym NMCI – is a large-scale effort to link Navy and Marine Corps computer systems on bases, boats and offices around the world.

Hanlon criticized NMCI's performance in managing communications with military commanders in Iraq. "I use my NMCI seat every day to talk to combat leaders in Iraq, and there have been far too many occasions where my seat has failed," he said, according to Federal Computer Week.

Hanlon said having enough dough for NMCI "will be a big hurdle to overcome," the FCW article said.

Meanwhile, the glitches could lead to job losses. "Navy and Marine Corps workers will begin leaving in droves if the Navy-Marine Corps Intranet doesn't begin to drive up efficiency and user satisfaction, a senior vice commander with the Naval Sea Systems Command warned," Government Computer News reported in a separate article on Wednesday. "We will lose the government workforce if we don't very soon start to produce the same level of efficiencies that they've had before," said Rear Adm. Anthony Lengerich.

EDS tried to be diplomatic about Hanlon's stinging criticism. "The reason we hold this symposium is to help us solve the challenges that are out there," spokesman Kevin Clarke told GCN. "We acknowledge that there are challenges and we'll work with the Marine Corps to solve them." He also produced this gem: "It is far more challenging than we anticipated."

The problems have not only put EDS in the spotlight, they have taken their toll on the company's bottom line. The Washington Post reported in February that the "[then] $6.9 billion contract, which requires EDS to make a large upfront investment in computer hardware, software and time, has been weighing on the company's results for several years. EDS said it is working closely with the Navy to hold down costs on the contract and announced a series of measures to increase management's supervision and decrease the risk of further losses."

The Dallas Morning News today said that the Navy is working to change some of the contract's requirements to make it easier for EDS to comply with what the Navy is looking for. "EDS would gladly welcome a less complex version of the massive contract to build and run a computer network for the Navy and Marine Corps. The planned changes could help EDS regain control of a contract that has struggled under delays and management problems. The company has never made money on the contract, which it won in 2000, and expects to lose $300 million or more on the deal this year," the paper said.

What Would England Think?

Navy Secretary Gordon England on Tuesday treated the NMCI controversy with kid gloves. GovExec's piece noted "Hanlon's comments came as a sharp contrast to the overall tone of the conference, where the NMCI project has received lavish praise from an array of service officials. ... England praised NMCI and said there are a 'few bugs' in the system, but 'you're always going to have them.'"

According to another Federal Computer Week article, England said initial expectations for the project "were way too optimistic." and that "despite perceived user dissatisfaction, the program is proceeding more rapidly than at any time in the past."

"We applaud EDS for staying the course with us," England said, according to an updated article by Government Computer News. As for any technical woes, "England likened the difficulties to the uncertainty he sometimes faces at home logging on to his America Online account." More from the article: "This has not been a perfect process... Still, it's already leaps better than the way IT was managed before in the Navy, he said." That provides little solace for taxpayers and government watchdogs who have watched the costs tied to the project soar despite lackluster results.

The Navy "might renegotiate payments to EDS considering the unexpected complexity of the project," another article by GovExec.com reported. "Schedule delays have forced EDS to shoulder an unexpected financial burden until more people can connect to the network. 'From the beginning of the program, we were struggling with schedules,' England said. He said 'that EDS and Navy officials "did not fully understand" the complexity of the program.'"

Navy Capt. Craig Madsen, who GovExec.com said manages the Navy's deployment of NMCI, offered some more sugarcoating. He "said that problems are bound to occur as people are integrated into the system, but added that most users are generally happy with the program. He said he has heard stories about problems, but hard data shows an 80 percent customer satisfaction rate. As the number of people who have to be integrated declines, customer satisfaction rates will go even higher, he said," according to GovExec.com.

The Dallas Morning News noted the "relationship between EDS and the Navy, while never openly contentious, was noticeably friendlier at a technology contractor conference in New Orleans this week, analysts said. 'Participants from last year noted the difference in tone and that there was very little finger-pointing and more of a collaborative approach,' said William Loomis, an analyst for Legg Mason, in a research note."

A Room of Empty Seats?

Pacific Business News, part of the American City Business Journals chain, explained that NMCI "is meant to replace tens of thousands of computer networks in the two services. It is run from three computer nerve centers, in Norfolk, Va., San Diego, and on Ford Island in Pearl Harbor. EDS originally said it would switch over 30 computer stations per day to the new network, but it has come nowhere close to that pace."

Case in point: The Marine Corps's transition to NMCI has not shown a good track record for EDS. "From the start, EDS has failed to meet its original goal of transitioning 30 seats per day at Quantico to NMCI. After a five-week pause in rollovers, EDS began the transitions at a brisker pace, but still short of the 30-seat target, Hanlon said," according to FCW. "We understand the [Navy and Marine Corps command's] intent, but it is imperative to tell them when it isn't working exactly as expected," Hanlon said.

Since March 2003, only 9,000 Marine Corps computer seats out of a total 89,000 have been transferred to NMCI, while only 1,350 out of 6,000 seats have moved to NMCI at Quantico, Va., GCN noted. According to GovExec.com, Navy officials said more than 360,000 users are now connected the system and 340,000 more will be added.

In other NMCI news, a center set up to evaluate software products and services for use on the NMCI network "may not be up and running until the end of this year, according to NMCI executives. NPEC is a clearinghouse that will allow software vendors to submit their applications to determine compatibility with the enterprisewide network," Federal Computer Week reported.

Finally, you can't credit Adm. Michael Mullen, vice chief of naval operations, with obscuring what he really thinks behind a veil of military-speak. Speaking at Naval IT Day in March, Mullen said this about NMCI, according to FCW: "If you don't like it, leave. Because we're going to do this. Resistance to it is costing me money and costing me time, and I won't stand for it. I'll plow through or over anybody and do whatever it takes. We're not doing NMCI because it's a cute idea, but because it will provide a bridge – a road – to the efficiencies we want to achieve."

Protection Is Key

The federal government is handing some government contracting firms a free pass against liability lawsuits for their homeland security work. "The Department of Homeland Security, in a gambit aimed at luring companies to develop more goods and services to protect the country from terrorist attacks, has granted four companies liability protection from lawsuits. Teledyne Technologies Inc., Michael Stapleton Associates Inc., Lockheed Martin Corp. and Northrop Grumman Corp. have developed five antiterrorism technologies that as of today will enjoy indemnity in case their products fail to perform during a terrorist attack. The technologies, which underwent a six-month review process, range from an anthrax-sniffing device to a giant water pick capable of cutting through steel and concrete," The Wall Street Journal reported on Friday.

The Washington Post said many other companies have applied for the special legal protection "and a dozen or so more will receive the designation before long, officials said." Here is a window into the rationale the contractors are using. "It was critically important for us and for the department to get approval [for protection] so the technology can be used to help save lives," said Terry Kees, vice president of homeland security systems at Lockheed Martin, according to Washington Technology. "Without it, we would have to consider the liability implications of its use."

Fly the Chatty Skies

Your travel itineraries might not be so private after all, thanks to Uncle Sam's prying eyes and new data on previously undisclosed information about airlines ponying up passenger data to the feds. Acting Transportation Security Administration chief David Stone testified at his confirmation hearing in the Senate Governmental Affairs Committee yesterday that more airlines than reported before gave the government personal data to test a computerized background-check project, The Associated Press reported. "Passenger data was obtained from at least two computerized reservation systems, Sabre and Galileo International, and from four more airlines than previously revealed: Delta, Continental Airlines, America West Airlines and Frontier Airlines, Stone said. ... The program for screening passengers, called the Computer-Assisted Passenger Prescreening System, or CAPPS II, has been delayed because U.S. airlines refused to turn over passenger data for testing after revelations that some had already done so. Northwest, JetBlue and American have been criticized for handing over such data – without the knowledge of their passengers – to the government or its vendors in the aftermath of the Sept. 11 terror attacks," the article said.

United Press International picked up on some negative remarks about CAPPS II from the Electronic Privacy Information Center. "The admission follows repeated denials to the public, Congress, General Accounting Office and Department of Homeland Security Privacy Office that the agency had acquired or used real passenger data,' to test the technology," EPIC said.

"I would like to see a full-blown investigation by Congress. For a year and a half we have been begging and screaming to find out the truth," Bill Scannell, a privacy rights advocate, told The Washington Post. He "started a Web site encouraging passengers to boycott Delta Air Lines after the airline volunteered in 2002 to help TSA develop the CAPPS II system. The carrier backed out after a public outcry," the paper said. The Wall Street Journal provided additional details on the development in today's paper.

Plastic Food Stamps

The government's food stamp program has joined the digital age. "The paper stamps issued under the government's Food Stamp Program will be phased out this month in favor of a plastic card much like a bank debit card, the department said Tuesday," the Associated Press reported. The wire also said that the Agriculture Department is also looking for an updated name for the program. The New York Times had this interesting factoid about electronic benefit efforts at the state level. "Electronic benefits have replaced food stamp coupons in all states, and more than half the states now issue electronic benefits in place of welfare checks as well. In addition, some states are using debit cards for Medicaid and the Special Supplemental Nutrition Program for Women, Infants and Children."

More on the transition, from Federal Computer Week: "USDA Secretary Ann Veneman said at the event, 'My only surprise is how long it took the whole country to get there.' The conversion to an all–electronic system, which took 20 years to complete, required cooperation from banks, grocery stores, state governments, Congress and the National Association of Clearinghouse Administrators, among others."

Loganberries

* Massachusetts State Police officials at Boston's Logan Airport are sporting souped–up Blackberry wireless e–mail and communications devices and other hand-held gadgets as part of their efforts to screen passengers for potential terrorism links. "Some of the troopers who regularly patrol the airport will be equipped with BlackBerrys linked to a repository of databases run by LocatePlus Holdings Corp., of Beverly, Mass. Others will get mobile iPaq hand–held devices made by Hewlett–Packard Co., which offer direct access to National Crime Information Center data about arrest records and terrorism watch lists," The Wall Street Journal reported. "Quick access to the database will allow police to 'either confirm or dispute someone's identity information a lot more quickly' than calling in for information over a patrol radio, said Lt. Thomas Coffey of the state police. But civil libertarians criticized the move, saying it will let police learn personal details even when people aren't under arrest."

LocatePlus chief executive Jon Latorella told The Boston Globe: "A name, that's all he needs," Latorella said. "He can find out who you lived with, where you lived, anything about you. We have every unlisted phone number in the country. Our stuff is instant, instead of having to wait until after the fact of a bombing." The Boston Herald also picked up the news.

Other Noteworthy Government IT News

* You might have heard about sick buildings, but how about ones that are immune to certain bioterrorism attacks? The idea is being bandied about as part of a research project at the Defense Advanced Research Projects Agency, Wired reported. "Specifics are mostly classified, but the goal is to defend against weapons like anthrax and sarin in heating, ventilation, and AC systems. Internal sensors would switch the building into 'precautionary mode,' activating defenses such as ultraviolet light to kill bacteria, and venting the dangerous stuff away from occupied areas. A higher–level response would include 'techniques that would be toxic to the occupants still in the release area,' according to Darpa. A test facility will be unveiled in Fort Leonard Wood, Missouri, later this year," Noah Shachtman wrote. He links to the write–up on his defense technology blog.

* Sun Microsystems is the latest tech firm to ramp up its government contracting efforts. The company has created a special unitSun Microsystems Federal Inc. – that will be led by executive Clark Masters. "Masters said Santa Clara, Calif.–based Sun 'over–rotated' in the late 1990s toward Internet service providers and dot–coms. The new government group signals the company's goal of realigning its government efforts under one umbrella and elevating its importance in Sun's overall strategy, he said. ... Masters said Sun will boost its participation in government research and development efforts. The company is working on the Defense Advanced Research Projects Agency's High Productivity Computing Systems program," Washington Technology reported. The unit will be based in San Diego and Vienna, Va., the article said.

* Finally, some good news about government Web sites, an online class often slammed for being clunky or hard to navigate. A new survey is giving high marks to improvements made at several federal agency sites. "The State Department's student site (www.future.state.gov) and the Federal Aviation Administration's site (www.faa.gov) improved most over a nine-month period measured by the index. Other sites that improved their rankings included the Office of Personnel Management's recruitment site (www.usajobs.opm.gov), the State Department's job site (www.careers.state.gov) and the National Library of Medicine site (www.nlm.nih.gov)," The Washington Post reported, citing results from a ranking of 53 federal Web sites by The American Customer Satisfaction Index. But government sites overall don't get a top grade. "Overall, the index shows 'mixed results in terms of how successful agencies are,' said Larry Freed, chief executive of ForeSee Results Inc., which helps produce the e-gov satisfaction report."

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