DLA awards $389.8 million ERP contract to Andersen Consulting

DLA awards $389.8 million ERP contract to Andersen Consulting

By Bill Murray

GCN Staff

AUG. 11—The Defense Logistics Agency yesterday awarded the Business Systems Modernization program contract to Andersen Consulting of Chicago.

The five-year, $389.8 million program will provide enterprise resource planning software from SAP America Inc. of Newtown Square, Pa., and supply-chain software from Manugistics Group Inc. of Rockville, Md.

Through BSM, the logistics agency will retire two legacy systems, the Standard Automated Materiel Management System and the Defense Integrated Subsistence Management System, said Army Lt. Gen. Henry T. Glisson, DLA's director at Fort Belvoir, Va. The program is part of DLA's initiative to lower costs and provide better support to Defense Department operating forces by becoming a manager of suppliers rather than a manager of inventory.

Next month's initial BSM task order will focus on the enterprise design, or so-called blueprinting of the system, said David Falvey, BSM program manager at DLA.

Because DLA made the award through a General Services Administration schedule contract, there is little chance of a vendor protest.

Andersen Consulting this week split from the Arthur Andersen auditing firm and will continue its operations under another name, so far unannounced.


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