BearingPoint wins Calif. payroll modernization deal

BearingPoint Inc. will implement a new payroll and personnel system for California under a $69 million contract awarded by the state Controller's Office.

BearingPoint of McLean, Va., will work with SAP Public Services of Washington to implement the initiative the state has dubbed the "21st Century Project." The goal is to replace a 30-year-old system with a state-of-the-art one.

SAP will furnish software, maintenance and training for state employees to run the software, while BearingPoint will adapt SAP's software and implement it among the state's various agencies.

The state selected SAP in April 2005 for the payroll and personnel software, and subsequently picked BearingPoint in February to handle the implementation. BearingPoint signed the contract earlier this month.

The system is scheduled to be online by November 2007, with full implementation expected by June 2009.

Controller Steve Westly said the state would be hard pressed to find technicians capable of fixing the existing system during a major breakdown.

"This project is not just about embracing new technology," he said, "It's about getting rid of old technology that could disrupt state government."