Attachment_7_Processes_Procedures_NMCI.docx

14 December 2011

Attachment 7 NAVAIR Processes and Procedures for Direct Funded Contracts (DFCs) requiring Navy Marine Corps Intranet (NMCI) access

If the NAVAIR contract/order duration is less than 2 years, DFC’s requiring seat access to the NMCI network will gain that connectivity following the guidance in OPNAVINST 5236.XX (Navy Enterprise Contractor Provided Laptop Policy) once it is implemented. Until the processes with this instruction are implemented, DFC’s requiring seat access to the NMCI network can purchase NMCI hardware directly from HP based on guidance in the NMCI Use Cases for Unclassified NMCI Connectivity chart below. For scenarios outside of those listed in the chart, please contact the NAVAIR NMCI CTR for guidance by email at NAVAIR NMCI CTR@navy.mil, Subject line: DFC question. At completion of their contract/order, all purchased NMCI services that were reimbursed by the government, must be returned to the government COR for that contract.

NMCI Use Cases for Unclassified NMCI Connectivity

If the contract/task order duration is 2 years or more, DFC’s requiring seat access to the NMCI network can purchase NMCI hardware directly from HP. Hardware will be treated as Contractor Furnished Equipment (CFE) and the DFC will retain title for the hardware. At completion of contract or at time of refresh of hardware, DFC is required to package the hard drive from each asset and ship to NSA for disposal in accordance with the Navy Telecommunications Directive (NTD) 03-11 (Disposal of Navy Computer Hard Drives; COMNAVNETWARCOM 021854Z MAY 11). NSA disposal instructions can be found at www.nsa.gov/cmc. Disposal will be handled entirely by contractor. Cost of said effort will be done in accordance with the terms of the contract.

HP agreed that any seats that were on a valid purchase order with HP prior to the start of CoSC (10/1/10) would be grandfathered and continued to be treated as leased services as they were under the NMCI contract. Any new seats purchased from HP after 10/1/10 would follow the new outright purchase process established by HP where the DFC pays a one time fee for the seat hardware and monthly connection CLIN fees to have that seat hardware connected to the NMCI network.

Cancelling Seats. If a company’s contract with NAVAIR is greater than 2 years, the scope of tasking is changed, and seats must be cancelled, the DFC will terminate the applicable seats on their HP purchase order. The DFC is responsible for packaging the hard drive from each seat asset and shipping to NSA for disposal in accordance with the Navy Telecommunications Directive (NTD) 03-11 (Disposal of Navy Computer Hard Drives; COMNAVNETWARCOM 021854Z MAY 11). NSA disposal instructions can be found at www.nsa.gov/cmc. Disposal will be handled entirely by the contractor. Cost of said effort will be done in accordance with the terms of the contract.

1) If the terms of a contract that contains NMCI/CoSC assets is descoped or terminated, then the PCO is to include in the terms of the contract modification that the contractor is to terminate the applicable seats associated with that contract action.

a) If the seats were held for less than 2 years by the contractor, all purchased NMCI IT hardware that were reimbursed by the government must be returned to the government COR for that contract for reuse.

b) If seats were held for more than 2 years, the DFC is responsible for packaging the hard drive from each seat asset and shipping to NSA for disposal in accordance with the Navy Telecommunications Directive (NTD) 03-11 (Disposal of Navy Computer Hard Drives; COMNAVNETWARCOM 021854Z MAY 11). NSA disposal instructions can be found at www.nsa.gov/cmc. Disposal will be handled entirely by the contractor. Cost of said effort will be done in accordance with the terms of the contract.

Refreshing Seats. Seat hardware must be refreshed every four years in accordance with the CoSC contract. At time of refresh, if the hard drive is encrypted by Guardian Edge, HP will retrieve the retiring asset to include the hard drive. HP has been granted a waiver by the Navy to properly dispose of encrypted hard drives from refreshed assets only. If the hard drive is not encrypted by Guardian Edge, HP must pull the hard drive and provide it to the DFC. The DFC is responsible for packaging the hard drive from the retiring seat asset and shipping to NSA for disposal in accordance with the Navy Telecommunications Directive (NTD) 03-11 (Disposal of Navy Computer Hard Drives; COMNAVNETWARCOM 021854Z MAY 11). NSA disposal instructions can be found at www.nsa.gov/cmc. Disposal will be handled entirely by the contractor. Cost of said effort will be done in accordance with the terms of the contract.

Business Analysis justifying CFE decision:

The average seat hardware cost is $1400 with an expected life of four years. The hardware is expected to have a value of $1400 at time of purchase and will lose one quarter of its value each year of its four year lifecycle. At the 2 year point, the hardware is expected to have an average value of $700.

If the hardware is turned in to the government at the end of the NAVAIR contract period, the government must accept and store the hardware, transfer it to the appropriate UIC ACTR, reconfigure and distribute for reuse within the NAVAIR workforce. An estimated 4 manhours would be required by the government to do these steps (Average $87/manhour *4 = $348). A physical MAC is required to reconfigure the asset and another is required to move and connect the asset for reuse within the NAVAIR workforce (CLIN 0X26AM = $275.83 * 2 = $551.66). The total cost is $899.66, $199.66 more than the value of the hardware at the 2 year point.