The delay in implementing the U.S. Navy’s Next Generation Enterprise Network (NGEN) caused by the contract challenge to the Government Accountability Office (GAO) has affected more than just the transition time frame. The network transition will cost more for the Navy because of lost funding opportunities.
The Navy lost the ability to use funds in fiscal year 2013, because the protest was not resolved until a month into fiscal year 2014. So, all the transition costs will have to be borne on funds in fiscal years 2014 and 2015. Fiscal year 2013 funds earmarked for NGEN could not be applied to the transition because of the stop-work order imposed with the challenge.