VA looks to USDA for new enterprise Financial System

Posted (Last updated )

** Posted October 12, 2016

G2X TAKE:  CGI Federal announced this week that they have been awarded a 10 year $824M contract for "cloud hosting, operations, maintenance and reporting services for Financial Management and Related Administrative Shared Services." "Using CGI's Momentum® Enterprise Solution, USDA, together with CGI, provides agencies with the hardware, software and services for their budget, financial, and acquisition management"

A version of the CGI Momentum solution has been the predominant financials system at VA for some time, so this move comes as little surprise. This T4NG prime would have already been considered a leading candidate for any work related to this, and you can expect this group to be a coveted partner for any T4NG tasks (e.g. integration, interfaces, reporting, etc) that take place on the VA side of the equation. 

There were no other bidders for this large contract. 


** Posted October 5, 2016

VA Selects USDA as its Federal Shared Service Provider, VA.gov, October 4, 2016

“The Department of Veterans Affairs (VA) has selected the Department of Agriculture (USDA) as its federal shared service provider to deliver a modern financial management solution that will replace the existing system and improve financial transparency and processing across the Department.

“The Department followed a rigorous process in selecting USDA,” said Interim Assistant Secretary for Management and Interim Chief Financial Officer Edward J. Murray. “Demonstrating a truly integrated decision-making process, subject matter experts across VA participated in intense week-long workshops and provided feedback to ensure we selected the right partner for transformation success.” In making this selection, VA also leveraged best practices and lessons learned from Office of Management and Budget (OMB), the Government Accountability Office (GAO), Department of Homeland Security (DHS), Department of Housing and Urban Development (HUD), and others.

Partnering with USDA allows VA to utilize an established and proven IT solution to better serve its financial management needs. This partnership demonstrates VA’s commitment to work with other agency partners to reduce duplication and redundancy across the government, while also improving both the quality and agility of administrative services.

“As a top FY17 VA priority, this effort will increase the transparency, accuracy, timeliness and reliability of VA’s financial information,” said Deputy Secretary Sloan Gibson. “It’s critical that VA continues to implement solutions that result in improved care and services to our Veterans with fiscal accountability to American taxpayers.”

G2X TAKE: Implementing an enterprise financial management system is a challenge for any organization, much less one as large, complex and decentralized as the VA. The formal announcement that VA will be outsourcing this effort with the USDA serving as the federal shared service provider, is likely to disappoint some of the big software players, but it does allow VA to leverage the experience gained by USDA across the Federal sector.

We won’t spend time here talking about some of the previous challenges VA has faced (*cough, FLITE*) in these areas, but it is important to remember that will be plenty of downstream opportunity for vendors as VA makes the switch – expect much more on this soon. 


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