One year after it announced it would decommission its shared services program, the Western Australian Government has launched a whole-of-government Common Use Agreement (CUA) to allow agencies to independently procure enterprise resource planning (ERP) solutions.
The Finance, HR and Payroll Solutions panel, which came into effect on 1 July 2012, will provide agencies with a range of ERP solutions including software licenses and renewals, hosting and bureau services and software-as-a-service provisioning. The CUA is expected to see $68 million in contracts signed over the term of the contract.
The following suppliers have already been approved for membership:
- Eclipse Computing;
- Empower Masterpay;
- GO Business;
- Managed System Services;
- Professional Advantage; and
- SDS Group.
CUA documents indicate that additional vendors may be added to the CUA as contract negotiations are progressively finalised.
The products and services that are covered under the CUA’s scope are divided into three categories:
- Finance solutions (mandatory);
- HR/Payroll solutions (mandatory); and
- Implementation and Application Support services (optional).
The CUA will operate for an initial two year period, with options to extend to a maximum term of eight years.
The arrangement represents an important step towards re-establishing agency-based corporate IT procurement in WA. The centralised shared services model was officially scrapped in July 2011 following a WA Government-commissioned report which found that the Office of Shared Services (OSS) had failed to deliver on its original targets and achieve any significant cost benefits.
According to the 2012-13 WA Budget, the decommissioning process will cost the WA Department of Finance $82.5 million over the next four years.
Solutions procured through the CUA will replace a central eBusiness Platform originally set up by the OSS for the use of all WA Government agencies.
The 39 agencies which had already transitioned their finance, HR and payroll requirements to the Oracle-based eBusiness suite are likely to be the first customers to the panel, however it is mandatory for all WA agencies to use in most instances.
The commencement of the panel also heralds the introduction of cloud-based software delivery into the WA Government. By including ‘as-a-service’ provisioning within the panel’s scope, WA has joined a number of other Australian jurisdictions, including Federal, NSW and Queensland in experimenting with cloud in the pursuit of budget efficiencies.
According to the Contracts WA website, the Finance, HR and Payroll solutions panel joins 13 other IT products and services panels, eleven of which include mandatory categories of procurement. These panels include an $80 million per annum whole-of-government IT Services panel.