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Department of Public Works Ref: DPWOOOOO/08
Ministerial briefing note
Shared Services implementation update
Purpose To provide the Minister with information regarding the
implementation of Finance and Human Resource Business
Solutions
Urgency Urgent due to pending finalisation of contract negotiations with
IBM
Background
In October 2007 the Treasurer's approval was given to enter into negotiations with IBM as
the preferred supplier to provide services to undertake outstanding development and
implementation of new SAP finance and human resource systems as part of the
Government's Shared Service Initiative.
At that time the completion of the outstanding development and implementation of the new
finance and human resource systems was forecast at Quarter One 2011. To manage the
risk a two phase approach was proposed. The first phase was targeted for completion by
Quarter One 2010 and would deliver:
implementation of the new Human Resources system in Queensland Health,
Department of Education, Training and the Arts, Queensland Corrective Services and
Queensland Emergency Services, servicing approximately 75% of the public sector
reimplementation of the new Human Resource system in the Department of Housing
completion of the Finance system implementation currently underway, bringing the total
number of agencies implemented to ten (this was a CorpTech exercise, not IBM)
subject to funding, undertaking priority implementations in a further four agencies.
Completion of Phase 1 should have resulted in all agencies using the new Finance
Business Solution, with the exception of nine agencies who would remain on an older but
stable version of SAP Finance (version 4.06c). Five agencies should have been on the
new Human Resource Business Solution. Eight of the remaining agencies would be on an
older but stable version of SAP Human Resources (4.06C) and 13 agencies on an
upgraded version of Aurion Human Resources (version 9.3.3)
Completion of Phase 2 would place all remaining agencies on a single integrated SAP
Finance and Human Resource Business Solution.
Funding of $153 million was available to engage a Prime Contractor (IBM) to undertake
Phase 1 of the Business Solutions Program and to cover CorpTech's costs for the
Program. These funds were increased by an additional S8.1 million by directing internal
CorpTech savings to the Program, bringing the total available funds for Phase 1 to $161.1
million.
RTI Document No.22
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Recommendation
It is reCommended that the Associate Director-General sign Change Request 184 (refer
Attachment C).
Responsible officers
James Brown, Program Delivery Director,
Margaret Berenyi. Executive Director, CorpTech
Z';6/d7
Recommendation approved
./ 6
1200
8
MacDonald
Associate Dlntctor-General F
j
RTI Document No.40
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Global Business Services
IBM Australia Limited
ABN 79 000 024 733
JBM Centre
Level 5
348 Edward street
Brisbane QLD 4000
Australia
25
'h
June. 2009
Ms Natalie MacDonald
Associate Director--General
Department of Public Works
Level 7,
80 George Sf
Brisbane 4000
Without Prejudice
Re: Completion of the QHIC Solution under SoW 8 amended by CR184
Dear Ms MacDonald
I refer to your letter of the 25
111
June, 2009 setting out the Department of Public
Work's proposal for the finalisation of contractual arrangements which will support a
Go Live in November 2009 of the LAniCE Payroll Replacement. I.e. the QHIC
Project
IBM appreCiates the continued support displayed by the Department and Queensland
Health and agrees in principle with the Department's proposal. This agreement is
subject to the finalisation and acceptance of contract terms.
IBM will work as a matter of priority with CorpTech to achieve a mutually acceptable
condusion to the matters identifie within the framework of Change Request 184,
before 30
th
June 2009.
Program Manager"FiHR
IBM Global Business Services
RTI Document No.45
Ref: DPWXXXXXl09
Submission to the Associate Director ..General
Subject Queensland Health Implementation Continuity 2009-2010
CorpTech costs
Purpose To advise the Associate Director-General of the estimated
additional CorpTech costs associated with the supporting the
Queensland Health Payroll Replacement Project until
implementation and seek approval to have this funded through
the Corporate Solutions Program.
Background
IBM is engaged as Prime Contractor to implement a replacement rostering and payroll
solution for Queensland Health under the Queensland Health Implementation of Continuity
(QHIC) Project. The solution will replace the current rostering solution, ESP and payroll
application, LATTICE with Workbrain and SAP respectively.
CorpTech is required to provide customer supplied resources under the terms of the
contract and has a number of key staff working on the project. Although these staff were
Originally provided as business analysts, they have over time become key implementation
resources. Customer supplied resources are funded by the Corporate Solutions Program
(CSP) and are subsequently backfilled where necessary within the CorpTech Service
Delivery and Project Delivery teams. At least five of these resources will return to
CorpTech as support resources after the project has gone live.
In addition to the customer supplied resources, CorpTech Service Delivery and Project
Delivery are injecting significant resources into the consultation and review processes for
Project Work Products and Deliverables along with User Acceptance Testing activity to
supplement the QHEST and IBM project teams. These resources are draining existing
support resource capacity and adversely impacting normal service delivery activity.
CorpTech is also providing resources for release acceptance and transition activities as
would be expected in such a project. This support is considered a core service delivery
activity and will continue to be funded by CorpTech.
The QHIC Project has missed several key milestone dates and is currently targeted to go
live in November 2009 with the first pay run scheduled for Monday, 30 November for an
employee pay day of Wednesday, 2 December.
RTI Document No.46
Issues
CorpTech is currently providing a much higher level of support to the QHIC project than
was originaUy envisaged under the contract. In September 2009, CorpTech will
provide an additional 15 staff equating to 13.1 Full Time Equivalents over and above
the customer supplied resource requirements. This excludes staff engaged on release
acceptance and transition support. The number of non-CSP funded resources working
on QHIC is having an adverse affect on service delivery to other clients, as there is
currently no funding stream to provide for backfilling of these staff. This is placing
significant pressure on a set of key resources that can be sustained. Currently, these
resources are not funded by the QHIC project and are being provided and funded from
core service delivery capability.
CorpTech service delivery is currently being impaired in both the Project Delivery and
Service Delivery branches. Service Level Agreement key performance targets are not
being met in some cases and maintenance and request for change activities are being
delayed and agreed timelines missed.
The Corporate Solutions Program forward program of works and machinery-of
Government change projects will draw on the same Service Delivery resources and
may be impacted due to resource constraints unless backfilling strategies can be .
funded.
To enhance the likelihood o.f a 2009 go-live for the QHIC project, Queensland HeaHh
has agreed to exclude the development of a full payroll costing solution (Defect 1100)
in the current release. Queensland HeaHh has commissioned CorpTech to develop a
full on-system costing solution and the implementation of system changes to address
for the various manual work arounds put in place to achieve the November go-live. This
activity will be funded by Queensland Health as a separate project.
It is anticipated that the QHIC solution as implemented will require Significant effort to
maintain over the first months post go-live and this will be addressed as part of ongoing
system support charges to be funded by Queensland Health.
CorpTech has estimated the additional resourcing and associated costs of providing
support to the QHIC Project will total $586,000. Detailed costings are available to
substantiate the resource estimates.
Recommendation
It is recommended that the Associate Director-General approve payment from the
Corporate Solutions Program funds for the actual additional CorpTech development and
technical support costs, up to a total value of $586,000 for activities associated with the
current QHIC project scheduled for implementation end November.
Responsible officer
MaJrfr.t ferenyi, Manager, CorpTech
Recommendation approved .. J1-1 g12009
Natalie MacDonald
Associate Director..Qeneral
RTI Document No.47
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