IBM Wins $370M Contract for Commissary Point-of-Sales System

IBM Corp. won an indefinite-delivery/ indefinite-quantity contract with a 5 base year + 5 option years cycle, and a ceiling price of $370 million. IBM will provide IT support services for the Defense Commissary Agency’s Commercial Advanced Resale Transaction System (CARTS), supporting worldwide operations for nearly 275 stores and replace the existing point-of-sales system used at checkout. The contract was solicited on a full and open competition basis, and four proposals were received by the Defense Information Technology Contracting Organization at Scott Air Force Base, IL (HC1013-06-D-2005).

The Defense Commissary Agency operates a worldwide chain of commissaries providing groceries to military personnel, retirees and their families. Authorized patrons purchase items at cost plus a 5-percent surcharge, which covers the costs of building new commissaries and modernizing existing ones. Commissary shoppers save an average of 30% or more on their purchases compared to commercial prices – savings DeCA officials estimate at about $2,700 annually for a family of four. The Army News Service has an article about the new system.