IBM Wins Customs Prize

IBM Corp. snagged the $1.3 billion Customs Service modernization contract to build the Automated Commercial Environment System to streamline the processing of goods across U.S. borders.

The modernization effort, which stretches over 15 years, includes re-engineering the way the Customs Service processes the import and export of goods.

The contract also covers the development of a new information technology infrastructure, computer systems and software to support the re-engineered processes. The new system also will enhance Customs' ability to intercept contraband.

The win is the largest government contract IBM has captured since the company sold its Federal Systems Division in 1993.

IBM is leading a team that includes Lockheed Martin Corp., KPMG Consulting Inc., Computer Sciences Corp., Sandler & Travis Trade Advisory Services Inc., Booz-Allen & Hamilton Inc., ITS Services Inc., and more than 40 small businesses.

Bidding against IBM were teams led by Accenture Ltd. and Electronic Data Systems Corp., according to a Customs Service spokesman.