IBM Lands $165M Deal with Navy Command

By William Welsh, Staff Writer


JULY 27 ? IBM Corp. announced July 26 that it has won a $165 million contract with the Naval Sea Systems Command to provide enterprise resource planning solutions for regional maintenance of Navy ships.


The ERP project involves the replacement of more than 150 outdated legacy systems operated by the command. The project is expected to result in cost savings totaling 36 percent over the next decade.


Depending on the weapon system, the Navy requires from one to three years to completely overhaul a ship, according to IBM. When the ERP project is fully implemented, IBM estimates that time frame will be cut in half.


"This project will streamline naval logistics processes, bring significant cost savings and improve delivery of naval maintenance services worldwide," said Anne Altman, vice president of federal sales for IBM.


Altman said the IBM solution is based on the Rhythm Optimizer for complex scheduling developed by i2 Technologies Inc. of Dallas, and an ERP platform developed by SAP Inc. of Newtown Square, Pa.

Other team members working on the IBM-led project are KPMG Consulting of McLean, Va., Science Applications International Corp. of San Diego, AMSEC LLC of Virginia Beach, Va., and Digital Systems International Corp. of Arlington, Va.

Naval Sea Systems Command is the largest of the Navy's five system commands, and is responsible for designing, engineering, integrating, building and purchasing U.S. naval ships and shipboard weapons and combat systems. Its responsibilities also include the maintenance, repair, modernization and conversion of in-service ships and their weapons and combat systems.


The project, which will take place in Norfolk, Va., home of the Navy's Atlantic Fleet, is expected to be completed in 2006.