Services Australia searches for cloud platform to host GovERP

Services Australia has begun searching for an SAP-aligned cloud platform to host the federal government’s next-generation S/4HANA enterprise resource planning (ERP) system.

As work continues on the so-called GovERP system, the services agency on Monday opened tendering for the infrastructure-as-a-service (IaaS) platform intended to eventually host it.

GovERP is being developed to consolidate corporate and financial systems across the government’s six shared services hubs, starting with the Department of Finance’s Service Delivery Office.

It will replace several existing SAP-based ERP systems that are expected to reach end-of-life in 2025 with a single S/4HANA platform, avoiding the need for each hub to invest separately.

Services Australia assumed responsibility for GovERP in July 2021 due in part to the large SAP workforce it has amassed during the welfare payments infrastructure transformation program.

In doing so, it insourced systems integration work that would have otherwise been outsourced under Finance, and brought in consulting giant EY to provide specialist skills under a under a $14.5 million contract.

According to tender documents, Services Australia will use the IaaS platform to host a series of hubs that support GovERP’s the core capabilities of finance and procurement.

A single two-tier “technology hub” will be used to host a template environment, while a single three-tiered “provider hub” will provide GovERP services to connecting client agencies.

The IaaS platform will be expected to meet the highest level of assurance under the government’s hosting certification framework, ‘certified strategic’, and be certified for S/4HANA.

All data stored in the platform will also need to be hosted in “certified strategic data centre facilities that are located in Australia”.

“End to end certification of the GovERP system to [the] protected” level will be treated as “highly desirable” rather than mandatory.

“GovERP is aiming to achieve whole-of-government efficiencies, operational effectiveness, increased agility, and visibility of workloads through the use of secure cloud infrastructure,” the RFT said.

Services Australia is planning to enter a two-year contract with a “suitably qualified and experienced” cloud service provider later this year, with submissions set to close on May 4.

Last week, Services Australia entered a $6.1 million contract with Deloitte for GovERP project management office services.