GSA awards $2.5B payroll shared services contract

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The General Services Administration awarded a $2.5 billion shared services contract Thursday for a modernized payroll system to be used across the government.

The 10-year NewPay blanket purchase agreement (BPA) is a software-as-a-service solution for which federal agencies can place task orders.

According to a release, the BPA “uses common, governmentwide standards built collaboratively with current payroll providers and subject matter experts from across government. These standards allow the government to adopt innovative commercial solutions and gain efficiencies and economies of scale.”

The payroll modernization shared service aligns with the administration’s Cross-Agency Priority goal for streamlining administrative services across the federal government, the release says.

“Today’s announcement of the NewPay awardees is an important step in our Shared Services journey as part of the President’s Management Agenda,” Federal CIO Suzette Kent said in a statement. “I look forward to seeing federal agencies have the opportunity to utilize leading business capabilities and dedicate greater agency focus on mission.”

Two teams were selected as part of the BPA to provide several payroll solutions. Team Carahsoft, which consists of Carahsoft Technology Corporation, Immix Technology and Deloitte Consulting LLP, will provide Kronos and SAP solutions. The second team, led by Grant Thornton with The Arcanum Group, Inc. and CGI Federal, will provide Infor services.

“NewPay demonstrates how the government will better coordinate and document common business needs across agencies by focusing on outcomes, data, and cross-functional end-to-end business processes,” said GSA Deputy Associate Administrator for Government-wide Policy Beth Angerman, who heads the agency’s shared services efforts. “Common standards are the key that will drive economies of scale and leverage the government’s buying power.”

GSA Administrator Emily Murphy said the BPA will “create ongoing value by empowering agencies to continue modernizing their systems.”

GSA issued a pre-solicitation in May seeking information on the development of the NewPay contract.

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Beth Angerman, Carahsoft, Emily Murphy, General Services Administration (GSA), Grant Thornton, NewPay, Payroll, shared services, Suzette Kent