DISA Awards $320M Contract to IBM for Commissary POS Hardware Replacement

IBM (NYSE: IBM) has been awarded a potential 10-year, $319.6 million contract from the Defense Information Systems Agency to update the current point-of-sale system at U.S. military commissaries worldwide.

The company will support Commissary Advanced Resale Transaction System modernization efforts in all Defense Commissary Agency locations globally, the Defense Department said Friday.

DoD noted the single-award indefinite-delivery/indefinite-quantity contract includes a minimum guarantee of $1 million and work could extend through June 30, 2026, if all options are exercised.

CARTS is designed to help U.S. military commissaries manage the resale of groceries and household items to service members and their families.

The system works to connect each commissary with the DeCA headquarters and two server centers built to support customer checkout and back office functions.

The first delivery order under the contract is worth $6, 688.533 for the work period of July 1 to Sept. 30 and falls under fiscal 2016 DeCA surcharge funds, according to the department.

DISA is scheduled to issue a second order by Oct. 1 and will use DeCA surcharge funds for fiscal 2017 to finance the remainder of the contract’s initial base year period.

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