Global technology leader IBM recently secured a significant $112.5 million indefinite-delivery/indefinite-quantity (IDIQ) contract from the Defense Information Systems Agency (DISA) to spearhead a major retail technology modernization effort.

This firm-fixed-price contract mandates IBM to manage and maintain the legacy Electronic Shelf Labels (ESLs) deployed across the Defense Commissary Agency (DeCA)‘s retail locations within the continental United States. The contract includes a one-year base period and four option years, projecting the upgrade and support work potentially through 2030.

Driving Efficiency and Accuracy for Military Families

This award directly supports DeCA’s mission to provide essential groceries to service members and their families. IBM will execute comprehensive annual hardware maintenance, manage software licenses, and provide robust support for the existing ESL infrastructure.

Significantly, the firm will also establish a dedicated development, test, and integration platform. This platform is crucial; it ensures DeCA’s existing legacy business solutions remain fully operational and tested, supporting global operations while paving the way for future upgrades. The contract explicitly prepares for the eventual expansion of the digital pricing solution to DeCA’s stores outside the continental U.S. (OCONUS), standardizing logistics and pricing accuracy worldwide.

Through this vital IT investment, DISA enables DeCA to streamline operations, reduce manual errors, and guarantee price integrity, ultimately enhancing the shopping experience for military communities.

🎯 Success Tips for GovCon Leaders

This contract demonstrates that government technology needs extend far beyond traditional networking and defense systems. Agencies actively seek commercial off-the-shelf (COTS) solutions integrated by trusted prime contractors.

To successfully pursue and execute modernization contracts like this, GovCon leaders should:

1. Prioritize COTS Integration Expertise: The government increasingly prefers commercial-grade, proven technology, such as these electronic shelf labels. Contractors must showcase deep experience in integrating COTS hardware and software into existing, often complex, government legacy systems.
2. Focus on Long-Term O&M: A large portion of this contract covers long-term maintenance and operations. Emphasize your firm’s ability to provide sustainable, multi-year support for licenses, hardware refresh cycles, and troubleshooting.
3. Master the Test Environment: Agencies like DeCA cannot afford downtime. Highlight your capability to provide stable “development, test, and integration platforms” that ensure seamless transition and continuous operation without risking mission-critical production environments.