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US Air Force awards STG US$1.8 million contract

STG, the market-leader in comprehensive enterprise risk management software and services, has been awarded a US$1.8 million (£1.1 million) contract with the US Air Force (‘USAF’) to deploy a second phase of its enterprise risk management (‘ERM’) system Active Risk Manager (‘ARM’). In addition the contract includes an additional two option years to allow the further procurement of ARM licenses.

Under the contract, USAF has acquired further ARM licenses, additional services and maintenance from Strategic Thought. USAF awarded STG its first contract, valued at over US$1 million, in the second half of 2008.

Headquartered at the Pentagon, Arlington, Virginia, the USAF employs over 800,000 military and civilian personnel and has a fleet of aircraft larger than the world’s major passenger and cargo carriers combined. The implementation of ARM into further Commands, Groups, and Wings of USAF will enable decision makers to access real-time authoritative risk information across a portfolio of programmes from a single web-based system.

ARM has been chosen by USAF to enable the standardisation of both its ERM processes and software. This will allow USAF to optimise and streamline resources throughout its acquisition organisation. As a result of this second phase implementation, USAF expects that ARM will deliver consistency and drive savings throughout its risk and program management operations. This second, more expansive contract win reinforces companies’ increasing utilisation of ARM’s extensive functionality across their whole organisation.

Terry Balven, Director, Acquisition Business Systems of the USAF, commented "We see ARM as a 'game changer' for the Air Force. Prior to the initial implementation of ARM, the Air Force undertook a serious examination of the requirements for improving and managing its risk processes. Our concern was not just managing risks within programmes, but to have a process for understanding risk at the enterprise level. Post-deployment, we are very happy with ARM and its risk management capabilities. The users within the Air Force, at all levels, are impressed with the breadth and depth of its functionality."

A further critical element in USAF’s decision to further deploy ARM is that it is widely perceived as the de facto ERM software solution by the Aero/Defence sector, as it is used extensively by USAF’s defence partners, including Lockheed Martin, Northrup Grumman, Raytheon and EADS, thus enabling a more streamlined integration of systems and co-ordination of risk management best practice.

Martin Metcalf, STG’s chief executive officer, commented “Following the initial roll out of ARM by USAF our software is proving its value as an important risk management system that is successfully fulfilling the requirements of this highly regarded organisation. Risk management is critical within large organisations such as USAF where a fully comprehensive understanding of risk is key for day to day decision making. The use of ARM across its supply chain allows for greater risk management integration and transparency. We are delighted to have the opportunity to support the deployment of Phase II of ARM into further areas of USAF which will underpin the implementation of ERM processes throughout the organisation and its partners.“