DHS picks SAP for welfare payments overhaul

The Department of Human Services has selected SAP as the preferred core software vendor for its major welfare payment system overhaul project.

The department has entered commercial negotiations with SAP over its involvement in the Welfare Payment Infrastructure Transformation (WPIT) program and has issued a new tender seeking to establish a panel of up to six system integrators.

SAP was selected after an initial tender process which commenced in September last year.

The WPIT program aims to streamline the system of welfare payments to ensure timely and efficient processing, and to link government systems to allow the expedient cross-checking of information such as Centrelink and ATO data.

Minister for Human Services Alan Tudge said the project aims to transform government service delivery to meet the challenges of the digital age.

“The [welfare payments] system is one of the largest and most complex in the world, delivering more than $110 billion of payments to over four million households, through more than 100 million transactions each year,” he said.

“Australians use digital technology in every aspect of their lives, using apps and websites to do everything from online banking to grocery shopping. The expectation is that government will keep pace with these changes, and that’s precisely what the WPIT program will deliver.”

SAP also recently secured a five-year, $86 million contract to provide software for the Department of Defence’s systems replacement project, which may provide an indication as to the potential value of the DHS contract.

System integrators applying to take part in the project have been asked to provide evidence of prior involvement in a large-scale business transformation project involving SAP software.

Image courtesy of David Jackmanson under CC