IBM (NYSE: IBM) has won a potential $850 million task order from the U.S. Navy to provide technical support for the service’s enterprise resource planning system, CHIPS reported Monday.
The Navy ERP Technical Support Services task order awarded under the SeaPort-NxG multiple-award contract supports upgrades to the Navy ERP financial system that oversees more than half of the service’s total obligation authority and has been fielded to 72,000 users across six systems commands.
“As we work with the Navy, our team looks forward to leveraging our cognitive expertise and utilizing cutting-edge technologies, such as automation and machine learning, to further enhance the Navy’s transformation,” Steve LaFleche, general manager of IBM’s U.S. public and federal market, told GovCon Wire.
The task order has a one-year base period, four 12-month options and another six-month option and covers information technology, systems integration, information management, process management, data services and information systems mission support.
IBM will also help update the Navy ERP system’s functions including logistics, sustainment, deployment and business intelligence. Work will also include data analysis and governance, software design, business system integration and business process management and reengineering.
“The award of NETSS is a major milestone in the continued maturation of Navy ERP’s capabilities,” said Edward Quick, program manager for Navy Enterprise Business Solutions. “The services provided by the NETSS task order will enable the continued migration of new commands to Navy ERP, a move that will facilitate the Navy’s ability to conduct a clean financial audit.”
The service issued a solicitation for the NETSS task order in December and accepted bids through Jan. 27.