DHS advances HR, finance systems

The Homeland Security Department is moving forward on major contracts to build a human resources system and a financial management system for the agency.

DHS is evaluating proposals from five companies it asked to compete for a $175 million contract to build the HR system. The invited bidders are: Watson Wyatt & Co. of Washington, Hewitt Associates of Lincolnshire, Ill., BearingPoint Inc. of McLean, Va., Deloitte Consulting LLP of New York and the IT unit of Northrop Grumman Corp. of Los Angeles.

On March 22, DHS told the five companies they would be invited to bid for a blanket purchase agreement to develop the department's Human Resources Management System.

The system will handle human-resources tasks for Homeland Security's 180,000 employees that are spread across 22 agencies.

The new system will cover pay, performance management, classification, discipline, labor relations and appeals.

The winning contractor will work with the department's chief human capital officer and chief information officer units to consolidate DHS' 80 human resources systems, the department said. The contract likely will be for one year with two one-year options.

The integrated financial system DHS wants built is called Emerge2. The project would allow the department to shift resources quickly to respond to changing threats.

DHS has requested $56 million for fiscal 2005 to start work on Emerge2.

Three teams are forming to chase the opportunity, sources said.

BearingPoint is leading a team with Lockheed Martin Corp. of Bethesda, Md., Booz Allen Hamilton Inc. of McLean and Deloitte Consulting.

A second team likely will be led by IBM Corp., Armonk, N.Y., with Accenture Ltd., Hamilton, Bermuda, and Science Applications International Corp., San Diego.

Industry executives said Computer Sciences Corp., Northrop Grumman and Unisys Corp. also were working at press time to form teams to bid on the Emerge2 contract.

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