CSC Selected to Receive $680 Million Army Logistics Modernization Contract.
As the Army's information technology (I/T) partner, CSC will provide the I/T 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 the Army's wholesale logistics processes in support of the Army's vision for the next millennium.
CSC will offer employment to all government employees affected by the LOGMOD contract award. These government employees are currently employed by the Department of the Army at two Army Central Design Activities in Chambersburg, Pa., and St. Louis, Mo. The exact number of individuals will be determined by the Army as the LOGMOD contract moves forward.
The LOGMOD contract 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 practices, including methodologies and e-commerce strategies, to federal government agencies such as the Internal Revenue Service, the United States Postal Service and the National Security Agency.
"The LOGMOD award signals a new era for today's U.S. Army," said Milton E. 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. Approximately 400 government employees at the two Army Central Design Activities in Pennsylvania and Missouri currently support these 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," said Jeff Plotnick, CSC vice president and account executive of the LOGMOD contract.
The Department of the Army included numerous innovative and cost cutting features in conducting the LOGMOD contract competition. The competition was conducted electronically without the burden of large volumes of paper processing, and the contract 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," said 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 Corporation, 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 committed to subcontract approximately 15% of the contract value to small businesses including small disadvantaged, woman-owned and hub-zone businesses.
CSC is a prime contractor on a number of key U.S. Army programs, including Joint Computer-aided Acquisition and Logistics Support, Global Combat Service Support, Joint Total Asset Visibility and the Logistics Integration Database Program.
So far in the company's fiscal 2000, CSC has announced approximately $9 billion in U.S. commercial, federal and international contracts. For the comparable first three quarters of fiscal 1999, CSC announced a total of approximately $3.5 billion in contract awards, excluding the company's multi-billion IRS contract.
Computer Sciences Corporation helps clients in industry and government use information technology to achieve strategic and operational objectives. With 54,000 employees in more than 700 offices worldwide, the company tailors solutions from a broad suite of integrated service and technology offerings, including e-business strategies and technologies; management and I/T consulting; systems development and integration; application software; and I/T and business process outsourcing.
Since its formation in 1959, CSC has been known for its flexibility in its relationships with clients. Through numerous agreements with hardware and software technology firms, the company is able to identify and manage solutions specifically tailored to each client's needs. CSC had revenues of $8.2 billion for the twelve months ended October 1, 1999. Its headquarters are in El Segundo, California. For more information, visit the company's web site at www.csc.com.