The Navy remains on target for the first installment of its next generation ship-based tactical network despite a delay in reaching a decision to go into low-rate initial-production (LRIP), a spokeswoman said last week.

The Navy had been expected to issue a Milestone C decision that includes (LRIP) for the Consolidated Afloat Networks and Enterprise Services (CANES) in the early fall. But that timing was affected by budget squabbles on Capitol Hill that resulted in continuing resolutions in fiscals 2011 and 2012, and by Lockheed Martin’s [LMT] protest of the contract award earlier this year to rival Northrop Grumman [NOC], Navy spokeswoman Capt. Cate Mueller said.

Lockheed Martin challenged the initial $36.6 million award to Northrop Grumman in the protest with the Government Accountability Office (GAO) Feb. 13, a move that forced the Navy to stop work on CANES. Lockheed Martin withdrew the protest a few weeks later. The total value of the contract could reach $638 million.

A Milestone C decision is now anticipated in December and the first installation of CANES on an Arleigh Burke-class (DDG-51) destroyer is to take place later that month, Mueller said. She said there were no technical issues behind the delay.

“CANES is technically sound, progressing as planned and will start their first install in December 2012,” Mueller said.

CANES is designed to eliminate multiple legacy information technology systems by effectively merging five stand-alone legacy networks for command, control, computers, communications, and intelligence (C4I) systems into a common shipboard computing environment.

The Navy plans to install CANES on more than 180 ships, submarines and operation centers by 2020.

During the LRIP phase, the Navy plans to hold a second competition next year for the full production run for the rest of the fleet based on Northrop Grumman’s winning design.

CANES is a cornerstone of the Navy’s push to move toward more open architecture systems designed to allow for easier upgrades while lowering total ownership costs, and to quickly counter emerging cyber or security threats. The program is designed to strengthen network infrastructure, improve security, and reduce hardware space. It will also decrease the manpower burden by reducing operations and sustainment workloads through the use of common equipment, training and logistics.

The Navy awarded dueling development contracts to Lockheed Martin and Northrop Grumman in March 2010 while eliminating Boeing [BA] and BAE Systems from the competition.