Foreign Affairs and Trade to split SAP and PeopleSoft ERP suppliers

It currently contracts a single supplier for both ERP systems, but now it wants to separate it.

The Department of Foreign Affairs and Trade (DFAT) is on the hunt for new suppliers to provide support, maintenance, and enhancement services to its SAP and PeopleSoft enterprise resource planning (ERP) systems.

DFAT's existing ERP system is based on the SAP ERP Central Component Version 6, which houses functionalities including analytics, financial reporting, and corporate services; while the Oracle PeopleSoft Enterprise Human Resource platform is used for time and labour tracking, manager and employee self-service tools, and security.

According to the request for tender (RFT) documents, DFAT currently contracts a single supplier -- Capgemini Australia -- to support, maintain, and enhance services for both SAP and PeopleSoft. However, by launching two separate RFT -- one for SAP and another for PeopleSoft -- it hopes that it will result in two separate contracts.

"DFAT's preference is that these contracts will be with different suppliers," the document said.

DFAT noted though that it would not rule out choosing one supplier for both RFT, "if this is considered to represent best value for money to DFAT".

For the two separate tenders that are being conducted in parallel, DFAT said successful suppliers would be responsible for transitioning each of the current ERP system support services from the incumbent service provider, as well as having to plan, operate, establish, and accept all new services and capabilities.

See also: Top 5 ERP systems that will help your enterprise digitally transform (TechRepublic)

At the same time, each supplier will be required to provide ongoing provision of support, maintenance services, service delivery management services, enhancement office services, and ERP system partnership services.

Some of the business objectives that DFAT is seeking to achieve through the RFT include strengthening its performance management framework, having a strategic partner to help optimise its investment and value in the current ERP system, and establishing a technology roadmap to migrate from the current ERP system to a new ERP platform or a centralised whole-of-government ERP arrangement.

The delivery timeframes for each project are expected to commence in February 2020 before concluding by 31 May 2020.

Updated at 9.47am AEST, 9 September, 2019 : DFAT has informed ZDNet that Capgemini Australia is its current contractor that provides support, maintenance, and enhancement services for both its SAP and PeopleSoft ERP systems

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