CSC SELECTED TO PERFORM $680 MILLION ARMY LOGISTICS MODERNIZATION CONTRACT.

Winning CSC Team Includes IBM, KPMG LLP, GRC, Metters Industries, & SIGNAL Corp.

Computer Sciences Corp. of Falls Church, Va., has been awarded the Army Wholesale Logistics Modernization Program (WLMP) contract, commonly referred to as LOGMOD. The combination firm fixed price and time and materials task order contract awarded by the Army Materiel Command is valued at over $680 million during a 10-year period of performance.

Under the big award, CSC will provide IT services required to reengineer and modernize the Army's wholesale logistics business processes through the adoption of best commercial business practices and associated technologies. The Army Materiel Command intends, through LOGMOD and related programs, to reengineer its wholesale logistics processes.

CSC says it will offer employment of all government employees affected by the LOGMOD award. The affected employees are currently employed by the Army at two Army Central Design Activities in Chambersburg, Pa., and St. Louis, Mo. The exact number of individuals will be determined as the LOGMOD contract moves forward, an Army spokesperson said.

LOGMOD continues a trend by federal agencies to turn to the private sector to obtain best commercial practices. CSC is under contract to provide a variety of these, including methodologies and e-commerce strategies, to federal government agencies such as the Internal Revenue Service, the US Postal Service and the National Security Agency.

"The LOGMOD award signals a new era for today's Army," says Milton Cooper, president of CSC's Federal Sector. "This modernization effort will promote the ultimate achievement of a seamless logistics system focused on systems interoperability and the adoption of best commercial practices."

Under the contract, CSC will be responsible for sustaining the current legacy wholesale logistics systems until replaced by the modernized processes. About 400 government employees at the two Army Central Design Activities in Pennsylvania and Missouri currently support the services.

"We recognize the importance of these valuable professionals and are offering employment, comparable pay and benefit levels, and financial incentives as they transition to CSC," says Jeff Plotnick, CSC vice president and account executive of the LOGMOD contract.

The Army says it included numerous cost-cutting features in conducting the LOGMOD contract competition. It was conducted electronically and includes performance bonus provisions that directly link the success of the private sector partner to clearly established performance levels.

"Our compensation is directly tied to measurements around business process improvement and financial and customer satisfaction performance levels," says Plotnick. "For CSC to be successful, the Army must achieve targeted levels of improvement in areas such as reduced source cycle time, increased inventory turns and improved perfect order fulfillment rates."

CSC's Federal Sector Defense Group is the prime contractor for the WLMP and will lead a team that includes IBM, Bethesda, Md.; KPMG LLP, Washington, D.C.; GRC International, Vienna, Va.; Metters Industries, McLean, Va.; and SIGNAL Corp., Fairfax, Va. IBM and KPMG LLP will both provide business process reengineering and commercial supply chain best practices and experiences. SIGNAL Corp. and Metters Industries will each lead support teams at the CDA facilities in St. Louis, Mo., and Chambersburg, Pa. GRCI will provide modernization and data management services. CSC is also required to subcontract 15 percent of the contract value to small businesses including small disadvantaged, woman-owned and hub-zone businesses.