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$58.5 million Accenture deal for Defence-wide payroll system

by Pallavi Singhal •
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The Department of Defence has signed a $58.5 million deal with Accenture for the development of a “single, unified payroll system” across its 99,000-strong workforce, which is expected to be operational by early 2015.

The two-year contract for system build services is due to expire on 31 May 2015. Accenture will provide the bulk of services for Defence’s Personnel Systems Modernisation project. The project aims to integrate the Department’s “Permanent Force payroll capability into Defence’s current core personnel management system which is used to pay Defence civilian employees and the ADF Reserve Force”, said a Defence spokesperson.

“The outcome will provide a single, unified payroll system for all Defence employees.

“Further, it will improve Defence's ability to ensure the correct and timely payment of the military and civilian workforce, and will deliver efficiencies from having a single integrated payroll system.”

The payroll system will be built in accordance with a commercial off-the-shelf (COTS) design approach, according to the Department.

The completed system will cover the entire Defence workforce, which includes over 99,000 staff across the Department’s permanent, reserves and civilian workforce, according to 2013-14 parliamentary numbers.

The major contract was signed through Defence’s Applications Managed Services Partnership Arrangement (AMSPA), under which Accenture is the preferred industry partner for the Human Resource Domain. This “comprises of applications development and support services associated with the PMKeyS solution”, according to the spokesperson.

Accenture is by far the leading supplier under AMSPA, and has won at least 28 contracts worth a total of $114 million since the establishment of the arrangement in September 2011. This accounts for nearly 53 per cent of Defence’s total procurement of $215.8 million that has been reported against the arrangement.

However, a significant portion of the project’s funding allocation is yet to be spent. Defence received total funding of approximately $90 million, with around $31.5 million remaining after the Accenture contract.

“The remaining work to be delivered under this phase of the project includes activities to support data migration, development and testing environments, and software licences,” said the spokesperson.

“Any further procurement will follow Defence procurement standards.”

This project marks the second phase of Defence’s broader reform of its core financial and personnel information systems, known as Joint Project 2080. The previous phase covered urgent improvements to certain Defence management systems, and is now complete.

Following the integration of payroll systems across the various areas of the Defence workforce, the third phase will see the integration of the existing human resources management system into the new unified payroll system.

Further phases include the enhancement of Defence’s financial management systems and ERP systems, and the consolidation of the wider ICT environment. These are expected to be progressively implemented from 2013 to 2020, according to the 2012 Defence Capability Plan.

Joint Project 2080 aims to align with Defence’s implementation of a shared services approach to its business environment. Shared services are currently managed by the Defence Support Group, which has already begun consolidating payroll and personnel administration services as part of the Department’s Strategic Reform Program, according to the 2011-12 annual report.

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  • Federal
  • Software
  • Defence
  • 2012 Defence Capability Plan
  • Accenture
  • Application Managed Services Partnership Arrangement (AMSPA)
  • COTS
  • Defence
  • Defence Payroll System
  • Defence Personnel Systems Modernisation Project
  • Enterprise Resource Planning (ERP)
  • Joint Project 2080