Defence brings in contractors for ERP "dress rehearsal"

The Department of Defence has called in outside help for business readiness testing around the financial portion of its long-running ERP rollout.

The department is planning to go live with its upgraded financial management information system and wants “specialist advice” to check its work on that portion of the project.

Speaking to iTnews, a Defence spokesperson said it sought contractors for “business readiness” activities, focusing on “data conversions, dress rehearsal activities and readiness criteria informing go-live decisions”.

“The ERP implementation requires significant technical expertise to be successful,” Defence said.

Defence’s ERP overhaul began in 2019 and will see the department transition to SAP S/4HANA over a series of tranches.

This year sees Defence focus on what it calls tranche “1B”, which covers its financial management information system, as well as supply chain management, enterprise asset management, purchasing, finance and foundation human resources.

According to Defence, the current finance system has not been upgraded in 20 years and supports the operations of “a complex $56 billion budget”, including invoice payment processing, payments to employees and asset management.

In a request for quote, Defence said it is looking for consultants to work with a small team and with Defence CFO Steven Groves to “inform business readiness” and reduce “financial risks to within tolerance levels”.

“With this engagement, Defence is seeking specialist accounting and ERP implementation advice to ensure all financial risks are being addressed to a high standard so that impacts on Defence industry, Defence staff and the accuracy of Defence financial statements are minimised,” the spokesperson said.

The call-out for help comes three years after an audit criticised the “large number of contractors working across all parts of the [ERP] program” and at “all levels of program decision-making".

The department told iTnews it is continuing to "ensure key decisions" around the project "remain with internal staff".