VA awards IBM $16 million IT reorg contract

The Veterans Affairs Department has awarded IBM Corp. a $16 million contract to help transform and centralize management of its IT organization. IBM plans to help create a more standardized, interoperable and secure IT environment. The project includes VA's health, benefits and burial administrations.

The contract lasts through 2008.

VA has taken the first steps to change the decentralized structure of its IT organization into a federated environment. VA has begun to centralize IT operations and budget authority under the department CIO, as Congress mandated last fall. IT development will remain with VA's health, benefits and burial administrations.

The Senate last week confirmed Robert Howard as the new VA CIO.

As of Oct. 1, VA has formally reassigned 4,500 IT employees from the benefits, health care and burial administrations to the Office of Information and Technology.

'The reorganization of our information technology infrastructure will improve the department's ability to provide the full range of benefits and programs to the nation's veterans," said VA secretary James Nicholson.

About the Author

Mary Mosquera is a reporter for Federal Computer Week.

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