Phoenix IBM and systems upgrades
Context
This note focuses on vendor support on the Phoenix file (IBM / Innovation Challenge) as well as the Phoenix pay system software upgrade (PeopleSoft 9.2).
All questions related to Next Generation pay solution should be directed to the President of the Treasury Board.
Suggested responses
- The Government of Canada is committed to supporting employees and resolving public service pay issues as quickly as possible
- We are reaching out to experts, federal public sector unions and the private sector for innovative solutions to help stabilize the pay system
- The Government has also launched a procurement process to engage the private sector in innovative solutions to further help stabilize the pay system.
If pressed on the upgrade to the Phoenix system:
- As part of its continued efforts to stabilize the pay system, the Department is proceeding with a Phoenix pay system software upgrade from PeopleSoft 9.1 to 9.2
- The upgrade is needed to ensure ongoing vendor support and updates which are required to calculate pay accurately and on time
- We have an extensive implementation plan in place, based on the lessons learned from the Phoenix rollout, so that employees are not affected by this upgrade.
- This upgrade will not affect or require upgrades to the 30+ HR systems that feed into Phoenix
Background
IBM contract and amendments
In June 2011, IBM was awarded the contract for the new Pay System through an open and transparent bidding process. Since then, there have been 47 amendments to the original contract, for a total contract value of $407.5M (taxes included). Amendments are a normal procurement process and were anticipated at the time of contract award. The 47th amendment will be posted on BuyandSell.gc.ca in mid-December, 2019.
The most recent amendment was issued in November 2019, and was required to purchase software licenses and to continue receiving maintenance and support services essential for pay stabilization which also includes the upgrade of the software used by the Phoenix pay system to PeopleSoft version 9.2.
Notice of proposed procurement
Public Services and Procurement Canada (PSPC) launched a procurement process in August 2018 to engage the private sector in innovative solutions to help stabilize the pay system.
Industry has been consulted in several areas identified as key to reaching stabilization. These are: Robotic Process Automation (RPA), HR Processes, Lowering the Queue, Improving User Experience, Enhanced User Access Management, Training, and Accelerator Services:
- Robotic Process Automation: 2 contracts were awarded in March 2019. A contract extension was awarded to KPMG on November 8, 2019 for Phase II work
- Lowering the Queue: 2 contracts were awarded in May 2019
- Accelerator Services: Invitation to Qualify released October 2019
- PSPC is currently re-evaluating the remaining challenge categories against current and future requirements
Phoenix System upgrade (PeopleSoft 9.2)
In 2015, the Oracle software vendor announced that it would no longer support the Phoenix pay system software, PeopleSoft 9.1. The upgrade to PeopleSoft 9.2 will ensure that PSPC continues to receive software patches, fixes, and tax rate updates that Phoenix requires to generate payroll accurately.
The PeopleSoft 9.2 upgrade consists of implementing a new version of the PeopleSoft application with limited impact and disruption to operations and users. The scope of the project is limited to the Pay System (Phoenix) and does not include upgrading the departmental HR Systems. The PeopleSoft 9.2 upgrade is progressing as planned with extensive testing with departments and agencies currently underway.
PSPC estimates that the overall upgrade is expected to take 18 to 24 months (including the planning phase) with a target go live in September 2020.
In Service Support: Re-procurement
- The current Application Managed Service Contract with IBM Canada Ltd. will end on March 31, 2021. It has an option year until March 31, 2022 which provides the Government of Canada a transition period towards a future state
- PSPC intends to re-compete the Application Managed Service by launching a draft RFP in early 2020
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