Defence offloads controversial HR system in $10 million deal

UXC to take ownership over seven weeks

The Department of Defence will transition full responsibility for its personnel management system PMKeyS to a local services company in the next seven weeks which is part of a $10 million contract.

Australian services company UXC Ltd and Red Rock Consulting (a wholly owned UXC subsidiary) has already begun providing support and maintenance services for PMKeyS.

For the first two years the contract is valued at $10 million.

The Management Key Solution (PMKeyS) project, which wound up in December 2002, has had a rocky history.

The Australian National Audit Office (ANAO) found the project exceeded its budget by $26 million and was three years late.

The total cost to Defence to bring PMKeyS into service, including the production support costs during the rollout period, is estimated to be at least $131 million.

This exceeded Defence's 1998 estimate of $103.5 million.

Specialised Oracle services group Red Rock Consulting, together with support from Oracle, will provide operational support and maintenance services and system change projects for the HR environment, PMKeyS.

UXC/Red Rock won the contract by offering a strong platform to ensure the operational sustainability of the PMKeyS environment, according to Cris Nicolli, CEO of UXC's business solution group.

"It is important to recognise that this decision by defence to engage UXC is further proof of an Australian Company being able to offer leading solutions - with a global context, and be rewarded for doing so," he said.

As part of the contract Red Rock will undertake three component engagements. This includes the transition project over seven weeks to transfer the system from defence.

This will be followed by production support with initial 24 month on-site support that includes fail and fix support, incident and problem management and monthly management reporting.

Finally, the contract includes system change requests including on-site resources for system changes and enhancements including development, testing and management into the production system.

Red Rock co-CEO, Jonathan Rubinsztein, said the engagement provides a strong foundation to further grow its Canberra-based business.

"It positions us as a significant Oracle services partner to major federal government agencies," he said.

The contract is the fourth in a series of major government projects awarded to UXC since March this year.

This includes the Department of Foreign Affairs and Trade's (DFAT) Consular Assistance and Information System and the Department of Health and Ageing's Interactive Communications Facility for the Pharmaceutical Benefits Scheme.

The total value of these projects is estimated at some $60 million with UXC indicating there will be more government contracts to follow.

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More about Australian National Audit OfficeAustralian National Audit OfficeDepartment of DefenceDepartment of Foreign Affairs and TradeDepartment of HealthLeading SolutionsNational Audit OfficeOracleRed Rock ConsultingRock

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