BETTER TO BEST
INSTRUMENT HANDLING SSG Christopher McKinnon, the 440th Army Band (AB) supply sergeant, conducts logistical operations using the GCSS-Army program at his unit in Raleigh, North Carolina, in May 2015. The 440th AB is one of the first Army National Guard (ARNG) units trained in the new Army logistics program. (ARNG photo by SFC Craig Norton, 382nd Public Affairs Detachment)
powerful
environment is
enabled by
SAP’s commercial off-the-shelf ERP soft- ware platform, which in turn enables the programs to:
• Improve the management and track- ing of
tactical-level • Standardize supplies and
equipment (Global Combat Support System (GCSS) – Army).
financial management
(General Fund Enterprise Business System (GFEBS)).
• Fully integrate national-level supply support (Logistics Modernization Program (LMP)).
• Improve data sharing and integration (Army Enterprise Systems Integration Program (AESIP) Hub).
• Support the environment (Headquar- ters Army Environmental System).
• Enhance project management (eNOVA).
Tese systems are integral to Army operations worldwide and represent an enormous volume of business conducted by nearly 200,000 users. For example, LMP alone manages $19 billion in inven- tory, processes 7 million transactions daily and interfaces with more than 80 DOD systems. Tree of the six ERP pro- grams are Acquisition Category I major
114 Army AL&T Magazine April-June 2016
automated information system programs and represent a combined $10 billion investment over nearly two decades.
SELECTING, MANAGING REQUIREMENTS AND VENDORS Before 1999, the Army procured numer- ous,
independent software applications
to separately manage specific missions, such as finance, national-level and tactical-level
logistics logistics. With those
systems becoming outdated, the Army made a strategic decision in 1999 to begin migrating to a modern,
off-the-shelf
ERP platform to transform its business operations. Over several years, each of the Army’s logistics and financial ERP programs
evaluated different software
platform solutions. Based on its ability to provide a variety of capabilities, as well as the company’s extensive experience supporting DOD and its unique require- ments, all six programs selected SAP, separately awarding over 20 contracts to purchase more than 50,000 licenses and maintenance packages from SAP and its licensed resellers.
In 2011, the Army recognized that it would need approximately 80,000 additional
licenses over the next
years. With that, AESIP recognized a significant category management oppor- tunity to bulk-buy SAP licenses to save the government millions of dollars and streamline support for ERP users across the programs. AESIP established an SAP integrated product team (IPT) with the Computer Hardware, Enterprise Software
and Services
gram office and the Army Contracting Command – National Capital Region (ACC-NCR). In partnership with the SAP IPT, ACC-NCR awarded the first SAP enterprise license agreement (ELA) by employing industry best practices, including category and requirements management,
relationship management
and demand management to obtain the best pricing and terms available.
four
Over the course of the SAP ELA 1, from 2011 to 2015, programs made larger-than- expected purchases to take full advantage of the favorable pricing and terms and, as a result, reached the contract ceiling nearly two years earlier than planned. It was evident that the Army needed a new contract to manage the ERP programs’ software requirements through 2020 to support continued fielding of new and expanded SAP functionality across the enterprise. Tis follow-on contract
(CHESS) pro-
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