California To Go Internet Shopping

California has opted to gradually move its contracting
and purchasing operations to the Internet, making a big winner of Andersen
Consulting. The company Friday landed a $5.4 million contract to build the
online system that will handle the operation.

Andersen plans to partner with PeopleSoft and Ariba Technologies to design the system, which
will replace mainframe applications now in use.

Ariba’s software allows companies to establish online catalogs from
authorized suppliers, giving employees and managers the ability to order
products over an intranet.

The system is expected to be operational by the year 2000. It will link the
state’s buyers to existing government contracts, giving them the ability to
purchase a variety of goods over the Internet.

Andersen estimates the system will pay for itself in two to three years by
lowering the cost of procurement.

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