E-Commerce Venture for AMS

American Management Systems Inc. of Fairfax, Va., and Ariba Inc. of Mountain View, Calif., will join in a major strategic venture to provide federal, state and local governments with the capability to purchase goods and services over the Internet."By partnering with Ariba, we are creating the first comprehensive e-commerce solution designed specifically for government," said Paul Brands, chairman and chief executive officer at AMS."Many of the same business-to-business e-commerce principles that help businesses cut costs are directly applicable to the public sector," said Keith Krach, president and CEO at Ariba.The partnership, announced last week, has three main thrusts. AMS will integrate Ariba's e- commerce software and services into its existing federal customers and market the Ariba solution to new federal customers. The companies hope to take advantage of the approximately $200 billion spent annually by the federal government through the General Services Administration alone.Also, AMS plans to launch Buysense.com, a long-anticipated Web site where state and local governments and institutions of higher learning can purchase goods and services. Beginning in early 2000, authorized government buyers will be able to search online supplier catalogues and place orders from their desks, thus streamlining the purchasing process and cutting costs. And AMS will use Ariba's solutions to manage commerce and transactions with its own suppliers.With annual revenue topping $1 billion, AMS provides financial and procurement solutions to 65 federal agencies and departments and more than 300 state and local governments. Ariba, a leading provider of business-to-business e-commerce, had 1999 revenue of $45 million. Its stock price has leapt from $23 per share to more than $200 per share since an initial public offering in June.