Accenture inks deal for more DLA modernization work

The Defense Logistics Agency has picked Accenture Ltd. for a five-year, $155 million contract for systems integration, engineering and application management services.

An additional five-year, $97 million option could potentially increase the contract value to $252 million, the company said.

The contract follows the DLA Business Systems Modernization contract that Accenture won in 2000. Under that contract, Accenture installed and managed a system from SAP that changed DLA's supply chain operations. Under the new contract, Accenture will continue DLA's modernization efforts.

The new agreement emphasizes new capabilities to make the supply chain support more efficient and effective, and the continuing effort to merge DLA's multiple logistics systems into a single one. It also continues the agency's efforts to replace legacy systems with commercial software.

Personnel in four Accenture offices will be involved in the contract: Columbus, Ohio; Philadelphia, Pa.; Richmond, Va.; and Battle Creek, Mich.

Accenture of Hamilton, Bermuda, ranks No. 24 on Washington Technology's 2006 Top 100 list of the largest federal IT contractors.