DLA Taps Andersen for Modernization

WASHINGTON (08/11/2000) - A hot competition to modernize information systems for the Defense Logistics Agency ended Thursday when the agency tapped Andersen Consulting Inc. to provide up to US$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."

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