IBM Granted $168.5 Million Navy Contract

July 28, 2000

IBM has been awarded a contract of up to $168.5 million by the Naval Sea Systems Command (NAVSEA) to serve as the prime integrator of NAVSEA's Regional Maintenance Enterprise Resource Planning (ERP) project. This will be the largest military ERP implementation project in the world, replacing more than 150 Navy legacy systems. Scheduled for completion in January 2006, the work will be conducted in and around Norfolk, Va.

In addition to improving delivery of maintenance services by naval personnel worldwide, the project is expected to result in total cost savings to NAVSEA of thirty-six percent over the next ten years. The Navy currently requires from one to three years to completely overhaul a naval ship, depending on the weapons systems involved. When this project is fully implemented, this time frame is expected to be reduced by 50 percent.

IBM's solution is based on i2's Rhythm Optimizer for complex scheduling and SAP's industry-leading ERP platform. Other team members working with IBM on this project are KPMG, SAIC/AMSEC, and DSIC.