IBM Australia wins $95.5m Defence ERP contract

The Department of Defence has awarded a $95.5 million contract to IBM to deliver the initial design of the Defence Enterprise Resource Planning (ERP) program.

The ERP program plans to roll out initial capability for finance reporting in 2020, followed by a larger logistics and maintenance capability in 2022.

The program is Defence’s largest-scale Information Communication Technology transformation program that will meet Australian Defence Force demands as it modernises capabilities and builds high-performing supply chains.

In a media announcement the Department said that the program will progressively deliver solutions that will affect every Defence member and transform the way Defence does business. It will provide a near real-time view of critical information across Defence to better inform decision making.

The ERP program is set to modernise, integrate and transform Defence’s approach to managing its finances, human resources, logistics, engineering, maintenance and estate.

The ERP program is an essential enabler of the Defence reform agenda outlined in the First Principles Review, and Tranche 1 will provide enterprise logistics and land materiel maintenance functions.