IBM inks Defense commissary system deal

IBM Corp. won a 10-year, $370 million contract to provide IT support services for Defense Department's commissary sales worldwide.

Under the contract, which consists of a five-year base period and five option years, IBM of Armonk, N.Y., will provide the services for the Defense Commissary Agency's Commercial Advanced Resale Transaction System.

The system, called CARTS, will replace the commissary's current point-of-sales system. During fiscal 2006, IBM will complete various stages of testing to prepare the new system for deployment.

Headquartered at Fort Lee, Va., the Defense Commissary Agency runs a worldwide chain of nearly 280 commissaries that provide groceries and household supplies to U.S. military personnel, retirees and their families at low prices consistent with quality. It employs about 18,000 people, serves about 11.8 million customers, and had sales in fiscal 2005 of $5.4 billion.

IBM has more than 369,000 employees and had annual sales of about $96.3 billion for fiscal 2004. The company ranks No. 14 on Washington Technology's 2005 Top 100 list of federal prime contractors.