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CHIPS Articles: NMCI Update

NMCI Update
By Joseph Cipriano - July-September 2001
Connecting Technology (CT) Spring 2001, May 15-17, 2001 had the honor and pleasure to have Mr. Joseph Cipriano, PEO-IT as a guest speaker. The following is edited from Mr. Cipriano's presentation at CT.


I'd like to talk to you about the progress we've made with the Navy Marine Corps Intranet in the last year. The Department of the Navy Chief Information Officer (DON CIO) likes to talk about re-purposing our networks as Navywide assets. Previously we treated networks as local assets — assets under the control of a command or a group of commands. The first thing we did was re-purpose that thinking a network is really a Navywide asset and how we should best use it should be determined by the Enterprise although it still must satisfy the needs of all the local users.

Bandwidth on Demand

For a period of time, the Navy had been unable to access access information. We were prevented from doing things we knew we could do, and using applications that we had developed for a Web environment because we did not have the bandwidth to support them. Our first attempts at Web-enabling applications were not very successful; in large part this is still true today. Typically, this is due to bandwidth limitations and problems with routing information to support Web-enabled applications.

We had to eliminate this as a restriction because as we started to look at the business issues of what it costs to provide information technology (IT) to individuals, we found that the cost of bandwidth was about three to five percent of the total cost.

Table 1. Actual Hardware Changes with Market--NMCI Price Remains Fixed. CLIN: 0001AA. Title: Fixed Workstation - Red Seat - $2958.12 per year. Pentium 800 MHz. Provides performance for use with 2-D and light 3-D graphics or engineering related applications, applications that require additional processing capability.  CLIN: 0001AB. Title: Fixed Workstation - White Seat - $2863.68 per year. Pentium III 733 MHz. Ideal for the typical user of Microsoft Office Professional Software. CLIN: 0001AC. Title: Fixed Workstation - Blue Seat - $2788.08 per yaer. Celeron 566 MHz. Provides adequate performance for daily office productivity applications. Ideal for administrative functions. CLIN: 0001AD. Title - fixed workstation - thin client - $2335.92 per year. CLIN: 0002. Title: Portable seat - $3699.00 per year. Dell Latitude C600. Provides excellent performance for office productivity software. Supports users needing remote access to NMCI. Enables high-quality presentations while on travel.
Table 1. Actual Hardware Changes with Market--NMCI Price Remains Fixed.

Table 2. Selected amortized costs of NMCI seat costs include costs which are amortized over the life of the contract. White seat cost: $2864 per seat per year. Pier cost: $44 per seat per year. PKI/Security Upgrades: $450 per seat per year. Technology refresh $370 per seat per year. White seat less amortized costs: $2000 per seat per year. Economics of scale drive down cost per unit of service.
Table 2.
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