IBM, CACI face off over $158M Army payroll contract

IBM Corp. is protesting a contract that CACI International won to be the systems integrator of the Army’s news personnel and payroll system.

CACI won the $157.6 million contract known as Systems Integrator Increment II Integrated Personnel and Pay System – Army in December. IBM filed its protest with the Government Accountability Office this week. GAO has until April 23 to render a decision unless the Army takes some other action before then. There was one other bidder on this contract, but so far, only IBM has filed a protest.

The contract is a real plum for whichever company ends up with it. The Army is modernizing its human resources and payroll systems by integrated the capabilities of some 40 stovepiped HR systems into a single system. Currently, the different systems cannot share information with each other, according to the Army’s IPPS website.

The Army needs the integration to create what it calls the Soldier Record Brief, which could become the official personnel document for all Army and Army Reserve personnel. It would hold data on overseas assignments, career data, security, service, family and personal, military education, civilian education, awards and decorations and other information.

IPPS has been called one of the largest data transfers in military history because it contains records on 1.1 million soldiers.

The modernization project is being rolled out in increments, rather than the big bang approach of its failed predecessor the Defense Department-Military Human Resource System or DIMHRS. The DOD-wide effort cost nearly $1 billion with little to show for it.

With IPPS, the Army is rolling out phases according to HR and pay functions. Each increment includes testing, training and implementation.

The other services also have similar efforts underway and the Army, Navy and Air Force are sharing information and lessons learned as they move forward.