DLA taps Andersen for modernization

A hot competition to modernize information systems for the Defense Logistics

Agency ended Thursday when the agency tapped Andersen Consulting to provide

up to $389 million in systems integration services for the Business Systems

Modernization (BSM) program.

The competition was a close call between Andersen Consulting, Reston, Va.,

and rival Electronic Data Systems Corp., Plano, Texas, according to sources

close to the process.

The BSM strategy is designed to allow the logistics agency to achieve long-range

business objectives while supporting improved military readiness through

rapid accessibility of information.

The first focus is to replace the agency's primary materiel management systems,

including the Standard Automated Materiel Management System and the Defense

Integrated Subsistence Management System. Other legacy systems will be replaced

shortly thereafter.

The systems will be replaced with an expanded enterprise computing environment

and commercial off-the-shelf software packages. Over several years, the

modernization effort will result in a new agencywide computing architecture

that will enable the agency to improve military readiness by enabling information

to be shared more easily.

"This is a significant milestone for our agency in its plan to achieve the

logistics transformation envisioned by Joint Vision 2020, the joint warfighting

vision for the military services," said Rear Adm. Ray Archer, Defense Logistics

Agency's vice director, in a printed statement. "This effort will provide

us with the necessary leading-edge technology to allow us to focus on our

core business: supply-chain management."

In addition to systems integration services, the contract with Andersen

includes enterprise resource planning and other software license costs,

software maintenance and training.