KPMG wins Navy aircraft systems contract

The Naval Air Systems Command (Navair) awarded KPMG Consulting LLC a five-year

blanket purchase agreement Monday to install software that will replace

the various business systems used to acquire and maintain aircraft.

As the integrator, KPMG's Federal Services group will work with eight subcontractors

to implement SAP America Inc.'s R/3 software solution, according to KPMG.

Subcontractors include IBM Corp., Science Applications International Corp.,

Logicon Inc./Northrup Grumman Corp., Lockheed Martin Corp., Digital Systems

International Corporation, Sierra Consulting, Matcom Corp. and SAP America.

Navair develops, acquires and supports aircraft and related systems that

can be operated and sustained at sea.

KPMG is required to provide a total solution that includes integration services,

change management and business process re-engineering support, said Dennis

Distler, program director of enterprise solutions at Navair, during a presentation

at the GPRA Institute-sponsored ERP for Government conference March 1 in

Alexandria, Va.

The Navy is using a two-stage approach to implementing its ERP solution,

according to a presentation by Vice Adm. John Lockard, Navair commander,

at the same conference. The first stage will prove the effectiveness of

ERP on a small scale through a pilot. The pilot will be followed by four

system implementation phases across the Navair team.

Full operational capability is expected in 2007, Lockard said.

KPMG will receive $9 million for the one-year pilot under the blanket purchase

agreement with Navair, a Navair spokeswoman said. Delivery orders for specific

tasks will be awarded under the BPA.

Navair chose to demonstrate the program management pilot on the E-2C Hawkeye

program office, which represents all dimensions of program management, according

to Distler. The pilot will focus on three areas: financial management, weapon

system acquisition, and asset tracking and configuration management.