Accenture Wins $252 Million Defense Logistics Agency Contract

Manufacturing News, Source : The Manufacturer US
Published : 06 Apr 2007 15:16

RESTON, Va.; April 5, 2007 – Accenture (NYSE: ACN) has been awarded a contract by the Defense Logistics Agency (DLA) to provide business systems integration, systems engineering and application management services.

The base contract is for five years and is valued at $155 million, with options to extend the agreement by another five years that are valued at $97 million. The Enterprise Business System (EBS) integration and sustainment contract continues DLA’s modernization efforts and provides application management support for the agency’s enterprise systems.

Accenture won the DLA Business Systems Modernization (BSM) contract in 2000 and delivered a new SAP-based system that transformed DLA’s supply chain operations. The new EBS integration and sustainment capability will build upon DLA’s modernization efforts to enhance the agency’s supply chains.

Under the new contract, Accenture will work with DLA to deliver new capabilities that are focused on providing more efficient, effective and reliable supply-chain support to the military services and America’s warfighters. Accenture will continue to modernize DLA’s multiple logistics systems into a single, integrated end-to-end system, extending business functions based on leading practices and replacing legacy software systems with commercial-off-the-shelf (COTS) software.

Accenture will also work with DLA to help implement its strategy and direction for future modernization efforts. The first initiatives that DLA has identified to be performed under EBS are the implementation of a new SAP-based eProcurement system and upgrading the SAP application suite to the latest version.

In addition, Accenture will assist DLA in performing its expanded mission under the Base Realignment and Closure (BRAC) 2005 Commission recommendations, where DLA will assume specific procurement responsibilities for the military services.

Accenture will also provide application-management services, supporting DLA’s mission-critical supply chain systems. The Accenture people working on the project will be located in Columbus, Ohio; Philadelphia, Pennsylvania; Richmond, Virginia; and Battle Creek, Michigan.

“As a result of the United States’ growing military obligations as well as Base Realignment and Closure requirements, DLA’s global mission continues to expand,” said Eric Stange, managing director of Accenture’s Defense practice. “Our supply chain expertise and unique understanding of DLA’s technical environment make us well positioned to help the agency achieve its mission of supporting America’s warfighters around the globe.”

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