Defence hands IBM a $95.5m contract

The Department of Defence has awarded IBM a $95.5 million contract to implement the initial phase of its planned SAP S/4HANA Defence and Security Industry Platform project.

The 18-month contract will see IBM implement SAP S/4HANA for the department’s enterprise resource planning needs, as part of a multiyear digital transformation program.

IBM will work on the deployment with local and international partners including COSOL, Dalmation 6, DASC, DXC, Ernst & Young, Fujitsu, Infosys, KBR, Noetic, Southern Cross, Synchrony Global, TAMS, XKG and Veritec.

The platform will initially be used to enhance the department’s logistics, land maintenance and engineering capabilities, replacing a large number of existing end-of-life systems.

A Defence ERP Program spokesperson said the program aims to roll out initial capability next year, to be followed by a larger release in 2022.

“The program will progressively deliver solutions that will affect every Defence member and transform the way we do business. It will provide a near-real-time view of critical information across the Department to better inform decision making,” the spokesperson said.

The department has been tasked with ensuring its operations are fit for purpose as part of the federal government’s First Principles Review of Defence.

IBM has been providing technology to the Australian government for 40 years, and both IBM and SAP have been suppliers for the Department of Defence for at least 20 years.

Image credit: ©stock.adobe.com/au/woravitworapani

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