Army chooses small business for $370M payroll system update contract

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The Army's Integrated Personnel and Pay System both helps soldiers get paid and leaders track other aspects of their service.

(EDITOR'S NOTE: This article clarifies and updates the original version of this article that described the competition as a recompete, which it was not.)

Nakupuna Consulting has won a seven-year, $370 million contract to introduce new capabilities and other functions into a system the Army uses to get paychecks to soldiers.

A total of five companies bid for this contract to provide support for the Integrated Personnel and Pay System – Army, the Pentagon said in its Friday awards digest.

CACI International has consolidated 50 disparate systems into a web-based platform since it won a $159 million contract in 2015 to develop and implement IPPS-A.

IPPS-A supports approximately 800,000 user accounts and 100,000 daily online users, according to CACI's website. IPPS-A also works to help Army leaders track absences, allotments, deaths, disability pay, incentive pay, re-enlistments, extensions, retirements, taxes, reporting and analytics.

Nakupuna Consulting will be responsible for integrating new functionalities into the pay generation and disbursement portion of IPPS-A. The Army is calling that portion AMP, or Army Military Payroll.

More contracts for future iterations of IPPS-A are in the works, including one for broader capability support and continuous modernization of the system.

Nakupuna Consulting will also work to ensure the system's continued interfaces with Treasury and the Army's current financial system of record -- the General Fund Enterprise Business System.

Nakupuna Consulting is an 8(a) small business and one of seven government contractors that are majority-owned by the nonprofit Nakupuna Foundation, a certified Native Hawaiian Organization chartered to support the economic advancement of Native Hawaiians.