IBM Awarded $123M VA Contract for New SaaS HR System

The Department of Veterans Affairs (VA) has awarded IBM a $123 million contract to upgrade its human resources system.

IBM announced it has been awarded a 10-year $123 million contract by the U.S. Department of Veterans Affairs (VA) to replace the agency's 50-year-old legacy human resources application with a new system delivered in a software-as-a-service (SaaS) model.

IBM will deliver what it refers to as a first-of-its-kind private-sector HR technology solution for the U.S. federal government. IBM has been selected as the HR Line of Business (LOB) Shared Services Center (SSC) provider for the VA and will build, operate and maintain a new HR system to be deployed across the enterprise to deliver a standardized and interoperable human resources experience.

The new HR system will allow the VA to better manage its workforce and will provide enhancements such as new self-service options for VA managers and employees. The VA expects to reduce costs by integrating all HR systems and related processes from its geographically dispersed operational locations.

"IBM is proud to partner with the Department of Veterans Affairs to support its critical mission of helping veterans," Anne Altman, general manager of IBM U.S. Federal, said in a statement. "The VA's Human Resources system will provide a more flexible, stable, and capable system to meet the evolving needs of the agency and its thousands of employees. The VA's greatest asset is its people, and this new HR system will bolster the agency's mission to provide care and benefits for our nation's veterans and their families. "

IBM officials said the company expects the new HR system for the more than 300,000 VA employees to be implemented by the end of 2015. A phased deployment strategy will be initiated in January 2014 after successful completion of design, development and testing of the new HR application in 2013. IBM will provide implementation services, as well as management and maintenance services for the new system over the course of the contract.

IBM has assembled a team of 11 firms with experience delivering federal solutions to assist in the delivery of the new system. IBM's VA HR solution will incorporate Oracle PeopleSoft, Monster Government Solutions and IBM Software products, including IBM Rational, IBM InfoSphere and IBM Tivoli.