The Australian Department of Defence (DOD) has terminated a $100 million tender for a PMKeys (Personnel Management Key Solution) which is part of a human resources management (HRM) information system upgrade, throwing out Oracle's response to the tender.
A media release from the department issued last Friday said defence will continue with an open tender approach for the project, but it will be reisssued to enable more competition.
DOD confirmed the tendering process will include alternatives for both the Oracle PeopleSoft solution and the SAP Human Resource Management (HRM).
The project (Joint Project 2080 Phase 2B) aims to complete integration of the military pay system into the personnel system in four phases and is worth in excess of $100 million.
Peter Lambert , head of the DOD's information systems division, said the tender is in line with normal tender requirements, but defence had no alternative but to terminate the RFT process.
"We needed to ensure industry could deliver a value for money solution within a required budget and schedule. The response of Oracle was non-compliant with conditions of tender that would have allowed us to ascertain these outcomes," Lambert said.
"Industry was involved in the preparation of the RFT supporting documentation and no concerns were expressed during the tender process. Indeed, feedback included advice that they were very happy with the tender processes and documentation, and understood the requirement.
"At this stage we intend to limit the solutions to our existing suite of enterprise resource planning (ERP) systems. Of those, only Oracle PeopleSoft and SAP have widely utilized and world-leading HRM capabilities."