Contact Energy set to retender SAP deal

The contract for Contact Energy’s major SAP project may be up for grabs again.

IBM was selected as prime vendor for the implementation in July, with SAP, Gen-i and Oxygen named as other parties to the contract.

However, there has been speculation recently that Contact would retender the contract.

In response to Computerworld inquires, a spokesman says the scoping phase of the project, which was designed to ensure the business is better informed about how the project can deliver benefits across the company, is now almost complete.

“Given the scale of the project, and its strategic importance to the company, we are implementing it in phases. With the scoping information available, the most appropriate step for us now is to seek tenders in order to best ensure we choose the right option for the company for the rest of the project,” the spokesman says.

“We see the ESP programme as critical to enabling business transformation and the project will continue over the coming months.”

IBM declined to comment on the project last week.

A Contact spokesman said in July, when IBM was awarded the deal, that the project would be rolled out in stages over three years.

The spokesman said the project would cover retail, finance and generation operations.

“It is, in effect, a business transformation project that will enhance Contact’s strategic capabilities across all areas of operation through technology.

“Much of the planning has already been undertaken and we are now at the stage of mobilisation — pulling together the right people and planning the project-team training, for example,” he said.

“SAP was selected after examining a wide range of criteria, going well beyond functional requirements.”

Contact has not disclosed the likely cost of the project, which has been put by industry sources at around $50 million.

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