Department of Defence awards $86 million contract to SAP

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The Department of Defence has signed a five-year software licence and support deal with SAP, valued at $86 million.

The contract is for the upgrade of the existing SAP Defence Forces and Public Security Solution, which is used in the finance, logistics, and engineering and maintenance areas, according to a Defence spokesperson.

The procurement process was conducted on a ‘limited tender’ basis, with no other software companies able to bid for the system upgrade.

While the Department of Defence said all consumption models were considered for the upgrade, the contract is based on the traditional software licence and maintenance model.

The installation will occur in phases over the five years to 2020, in accordance with the Defence strategic plan, the spokesperson said.

The Department of Defence originally implemented an SAP system in 1999, and completed the ROMAN upgrade project, which included an upgrade to ECC6.0 and enhancements of its finance system, in 2007. The Department invested a further $22.6 million in a range of products including SAP’s Public Sector Business Suite, NetWeaver packages, and BusinessObjects in 2010.

Image: Australian Defence

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