The Ministry of Business, Innovation and Employment (MBIE), which found itself in breach of the NZ Holidays Act, is searching for an SAP partner to support its new payroll system.
MBIE is implementing a new SAP payroll solution comprising SAP SuccessFactors and Kronos Workforce Dimensions modules.
Phase one of the project is expected to go live in November 2020 and the ministry has now gone to market for support services as it determines whether to build internal capacity or to continue outsourcing.
MBIE is looking for SAP gold certified partners with a track record supporting SAP SuccessFactors and, ideally, Kronos Workforce Dimensions modules in customers with similar requirements.
"This is a significant opportunity for SAP gold certified partner suppliers interested in supplying to a large, high profile government department," a tender document said.
"This procurement process will provide the successful respondent with the opportunity to enhance their reputation for support services delivery within the New Zealand public sector."
MBIE, which was subject to an enforceable undertaking from its own Labour Inspectorate division, has addressed holiday pay and other leave entitlement calculation errors for current staff but is understood to be still working to fully correct payments to former employees.
MBIE selected SAP as a service last February to provide a configured, off-the-shelf, as-a-service system.
The cost to design, test and implement a new payroll system was estimated at the time at $15 million to $18.5 million, including vendor costs.
In the 2019 Budget, however, the ministry was voted $12.9 million in operating and $2.7 million capital funding to replace its then 20 year old payroll system and to comply with its legislative requirements under the Holidays Act.
SuccessFactors is also used by the Ministry of Social Development, Oranga Tamariki, the Environmental Protection Agency and Police, among other government agencies.