SAP Buys Firm, Lands Contracts for States

SAP Public Sector and Education Inc. is adding more procurement capabilities with its acquisition of Procurement Automation Institute Inc.

SAP Public Sector and Education Inc. of Washington is adding more procurement capabilities with its acquisition of Procurement Automation Institute Inc. of Arlington, Va.


PAI develops procurement software and has more than 20 federal, state and local government agencies as customers. Terms of the deal were not disclosed.


SAP officials said PAI's products would complement SAP's electronic business software. PAI's software aids in paperless contract writing.


SAP's government unit also recently won a new contract with the Virginia Department of Corrections and is launching a new tax and revenue management solution.


For Virginia, SAP will install a Web-based offender management system that will process information on prisoners from intake to parole and probation case management.


The new tax and revenue solution is the result of a pilot the company did for the Florida Department of Revenue. The new product provides capabilities such as tax calculation and billing, delinquent notification, taxpayer and debtor accounting to manage write offs and deferrals.