Next Generation Enterprise Network: Navy Implementing Revised Approach, but Improvement Needed in Mitigating Risks

The Department of the Navy (DON), a component of the Department of Defense (Defense), is replacing its existing network system with the Next Generation Enterprise Network (NGEN). Capabilities for the new system include secure transport of voice and data, data storage, and e-mail, at a cost of about $38 billion through fiscal year 2024. In March 2011, GAO reported that the approach for acquiring NGEN was not grounded in a reliable analysis of alternatives, the execution of NGEN was not based on a reliable schedule, and acquisition decisions were not always performance- and risk-based. GAO recommended that Defense, among other things, reconsider its approach. The department has not yet fully implemented GAO's recommendations, but it revised its approach to include acquiring certain NGEN services simultaneously instead of staggering their implementation. GAO was asked to review the revised approach to determine the following: (1) the extent to which DON's selected approach to acquire NGEN is the most cost effective, and (2) the current status of and plans for acquiring NGEN. To do this, GAO reviewed analyses supporting the cost effectiveness of the acquisition approach, the program's revised acquisition strategy, integrated master schedule, key milestone decisions, and other relevant documents. GAO is recommending that Defense develop comprehensive risk mitigation plans for program-wide risks. In its comments, Defense concurred with GAO's recommendation and noted that it will continue to build on efforts to improve NGEN risk mitigation. Report to Congressional Requesters.