The Western Australian Department of Finance has approached the market to establish a Common Use Agreement (CUA) that will cover the provision of finance, human resources and payroll solutions to the state’s government agencies for up to eight years.
The tender process is a key step towards decommissioning the shared services arrangements that were established by the Western Australian Government in 2003, and then scrapped eight years later in July 2011.
Central to the shared services scheme was the transition of agency-specific corporate systems into single Oracle platform, managed by the Office of Shared Services (OSS). Known as the eBusiness Suite, the platform consolidated the finance, payroll, human resources and procurement functions of the participant agencies.
The establishment of the CUA will facilitate a return to agency-level procurement of these solutions within Western Australia, as 39 agencies prepare to transition out of the shared services arrangements over the next 18 months.
Interested vendors will have the opportunity to tender for panel inclusion in one or more of the following categories:
- Finance solutions;
- Human resources/payroll solutions; and
- Implementation and application support services.
Procurement through the first two categories will be mandatory for applicable agencies, while category three will remain optional.
The initial term of the CUA will be two years, with three options to extend by two years available. The Department of Finance estimates the value of procurement in these categories to reach $68 million, or $8.5 million per annum, over the full eight year term based on current contracting levels.
Tender documents also state that hosted services, bureau services and Software-as-a-Services offerings will all be covered under the solutions categories.
Once tenders close, the Department intends to compile a shortlist of those tenderers meeting all of their capability and compliance criteria. Shortlisted vendors will then be asked to submit their pricing and from then on will be assessed on a value for money basis. Pricing submissions are due to open in April.
When the panel becomes active, agencies will be required to request quotations from all panellists for any procurement worth more than $2.5 million. Procurements expected to fall below this threshold will require agencies to seek between two and five quotations.
At present there are 63 whole-of-government CUAs operating within the Western Australian Government, many of which are only mandatory for use within metropolitan areas. Of these, eleven apply to IT and one to telecommunications.
CUA 169209 for Data Centre Facilities and Associated Management Services and CUA 22008 for temporary staff including ICT labour hire are both due to expire later this year, however both have options to extend remaining.
Tenders for the ERP panel close 9 March 2012, and a Briefing Session will be held in Perth on 17 February 2012.