DLA taps Andersen for systems revamp
- By George I. Seffers
- Aug 14, 2000
A hot competition to modernize information systems at the Defense Logistics
Agency ended Aug. 10 when the agency tapped Andersen Consulting to provide
up to $389 million in systems integration services for the Business Systems
BSM is designed to allow the agency to achieve its long-range business
objectives (see sidebar) while also supporting improved military readiness through
rapid access of logistics 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
"The BSM contract is a key enabler for us to get our re-engineered processes
in order for the next century and is really about re- engineering the way
we do business more than anything," said David Falvey, BSM program manager.
An example of industry best practices that the agency will adopt under
the program is taking greater advantage of World Wide Web-based business-to-business
capabilities, Falvey said.
Along with Andersen, an $8.3 billion global management and technology
consulting company, the competition drew heavy hitters such as Electronic
Data Systems Corp., Hewlett-Packard Co., Computer Sciences Corp., IBM Corp.'s
Global Systems division and Price WaterhouseCoopers. The competition closed
after a tough fight between Res-ton, Va.-based Andersen and Plano, Texas-based
EDS, said sources close to the process. Officials at Andersen were unable
to comment by press time.
Andersen will receive an initial $38 million and the rest if all contract
options are exercised. The entire implementation is expected to take five
years. "We were obviously dealing with top-tier integrators," Falvey said.
"We made the selection based on the best-value proposal for the agency from
a technical and business standpoint."
"This effort will provide us with the necessary leading- edge technology
to allow us to focus on our core business: supply chain management," said
Rear Adm. Ray Archer, DLA vice director.
In addition to systems integration services, the contract with Andersen
includes enterprise resource planning and other software license costs,
software maintenance and training.