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Accenture launches into another big year with $50 million Defence HR deal

by Paris Cowan •
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Accenture has secured a $50 million deal with the Department of Defence, taking its 2012-13 contract total with the Australian Federal Government past $100 million, just  four months into the financial year.

Defence confirmed that it has signed two work orders with Accenture for $15 million and $35 million respectively, relating to the provision of design services for the Department’s replacement of its Human Resources platform PMKeys.

The PMKeys overhaul is Phase 2B.1 of Defence’s ERP enhancement program JP 2080.

Subsequent phases of JP 2080 will see upgrades to the Department’s financial management information systems and its SAP-based Resource and Output Management and Accounting Network (ROMAN) application rolled out.

The Defence Capability Plan says that Phase 2B.1 will “deliver improvements in Defence’s personnel systems that will ensure the long term solution for these systems is aligned with Defence’s human resources (HR) reform initiatives, including the implementation of a shared services business environment”.

The total cost of Phase 2B.1 is estimated to be between $300 million and $500 million. The design services component to be delivered by Accenture forms just one of several streams of work within the program’s scope, including installation, education and training, software development and testing of the new systems.

The work orders cover the term 14 September 2012 to 31 August 2013 but have yet to be published on AusTender.

This early success in 2012-13 builds on the $400 million in total contract value signed by Federal agencies with Accenture in 2011-12, including $111 million for an Enterprise Data Warehouse (with Teradata as the subcontractor) for the Department of Health and Ageing (DoHA), and the $108 million in total contract value for the build and operation of the Personally Controlled Electronic Health Record (PCEHR) initiative.

Accenture had an average contract value of $8.9 million for the year, with more than half of its 45 Federal Government contracts published over the period worth more than $1 million.

Beyond Canberra, Accenture was also awarded a $109 million contract to oversee the final stages of the NSW Department of Education and Communities’ troubled Learning Management and Business Reform (LMBR) project in 2011-12.

The 2011-12 results place Accenture well inside the top 10 suppliers to the Federal Government in the year, alongside two other newcomers (Canberra Data Centres and Oracle), displacing some of the traditional place holders. 

Just four months into 2012-13, the $50 million deal with Defence has added to another seven contracts worth $56 million already won by Accenture and published on AusTender this financial year. This includes $22.3 million for work on the Australian Taxation Office’s superannuation reforms.

For more on the biggest buyers and sellers in the 2011-12 Federal Government ICT market, register now for Intermedium’sYear in Review Briefing to be held on 14 November in Canberra.

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  • Deaprtment of Defence
  • Defence
  • Department of Health and Ageing
  • JP 2080
  • NSW Department of Education and Communities
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  • PMKeyS
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