Navy Picks IBM to Keep Fleet Shipshape

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.

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.

This IBM solution is based on i2’s Rhythm Optimizer for complex scheduling and SAP’s ERP platform. Other team members working with IBM on this project are KPMG, SAIC/AMSEC and DSIC. Work on the project will take place in and around Norfolk, Virginia and should be completed in January 2006.

NAVSEA is the largest of the five Navy Systems Commands, the Navy’s centralized program for designing, engineering, integrating, building and procuring U.S. Naval ships and shipboard weapons and combat systems. NAVSEA’s responsibilities also include the maintenance, repair, modernization and conversion of in-service ships and their weapons and combat systems.