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IBM cruises into Defense's top gun spot

Big Blue wins a contract worth between $50 million and $100 million to help the Department of Defense overhaul its financial systems.

IBM has won a contract worth between $50 million and $100 million to help the Department of Defense overhaul its financial systems.

Big Blue, which was designated the lead contractor on the project, will work with American Management Systems, KPMG, DynCorp, Science Applications International and Accenture to "design a blueprint" for future Defense Department investments in financial systems.

The goal is to modernize the department's financial practices and to integrate systems and business processes in logistics, health care, accounting, finance, personnel and other areas, reducing the almost 1,000 standalone systems that generate financial data. A transition plan is expected by March 2003.

"Development of a financial management enterprise architecture is a major step in realizing Secretary Rumsfeld's goal of managing the (Department of Defense) in an efficient, businesslike manner," Under Secretary of Defense Dov S. Zakheim said in a release.