PwC paid $12m for NSW government’s ERP data migration strategy

The global consulting giant PwC will receive $12.2 million over the next two years to develop a data migration strategy for the massive consolidation of the New South Wales government’s enterprise resource planning (ERP) system.

Overdue details of the ‘data service’ contract for the Process and Technology Harmonization (PaTH) program were revealed by the Department for Communities and Justice (DCJ) this month, despite the signing of the contract in January.

The PaTH program is the government’s latest attempt to standardize ERP systems used in the public sector, with the first ‘horizon’ bringing together 40 agencies from the Stronger Communities, Planning, Regional NSW and Premier and Cabinet clusters.

The whole-of-government effort, formerly known as “ERP 2.0”, began following the 2019 national elections and was initially overseen by the Department of Customer Service, before responsibility was transferred to DCJ the year last.

About $235 million of the $2.2 billion Digital Restart Fund has been set aside for consolidation so far, with the bulk of the funding provided in the 2020 mid-year budget update.

Under the recently released contract, which runs from January 10 of this year to January 9, 2024, PwC will receive $508,000 per month to develop a data migration support strategy from legacy systems to SAP.

According to the contract notice, the data migration strategy is designed to “populate and validate the SAP system with clean data necessary for business operations”, while minimizing “the amount of historical data to be migrated” and the associated risks. .

Accenture is already working on delivering the SAP platform that the initial 40 agencies will eventually use, after securing a seven-year, $163.7 million contract for Horizon One – the first of three Horizons – in December. 2021.

The government will also spend an additional $78.5 million on SAP software licensing and support costs over four years. The cost of SAP ERP over the past 15 years is estimated at $475 million, a figure that was revised down up from $1.65 billion earlier this year.

A spokesman for the Department of Communities and Justice declined to comment on PwC’s contract, including its use of limited tenders and heavy reliance on non-tariff scale, citing ‘confidential business’ sensitivities .

Non-price was given a weighting of 70% in the evaluation criteria, compared to 30% for price. This figure was higher than the non-price/price weighting of the Accenture PaTH program Contract.

The spokesperson was also tight-lipped on why the department did not post PwC’s contract notice on eTendering within 45 working days as required, describing the six-month delay as an “oversight”.

Do you know more? Contact James Riley by email.

Sean N. Ayres