The short answer is: it's possible (I think). Using IIS only, however, it won't work. You can either use integrated Windows authentication OR enabled anonymous access.
What you'd probably have to do is determine if the IP address accessing the script is within the range used on your LAN and, if so, initiate the NTLM handshake yourself (this part I'm not sure how to do using PHP). For the script itself in IIS, you'd leave anonymous access enabled so that everyone can at least access the script.
So, if you can figure out how to perform NTLM authentication using PHP, then yes, it's possible.