Interior chooses a vendor for its royalty program

The Interior Department’s Minerals Management Service awarded a $65 million
contract last month to American Management Systems Inc. of Fairfax, Va., for Royalty
Management Program support services.


Under the contract, AMS will operate and maintain RMP’s mainframe systems for the
next seven years, said Milton Dial, project manager for the RMP Re-engineering Initiative.
RMP runs its applications on a Hitachi Data Systems Corp. EX-90 mainframe, Dial said.


RMP collects revenues from federal onshore and offshore mineral leases. Individuals and
companies bid for the leases, pay an initial bonus and then rent the right to develop
federal lands, MMS spokesman A.B. Wade said.


If minerals are found, extracted and sold, the government is entitled to a percentage
of, or a royalty on, the production. RMP manages and collects the royalties, Wade said.


Bonuses, rents and royalties from the leases average $4 billion a year. Each month, the
Denver RMP office processes more than $300 million in payments, mostly via electronic
funds transfers, Wade said.


RMP is now re-engineering its business processes so it can expand electronic funds
transfers and other data.


“We want to better understand the future needs of the RMP support system,”
Dial said.


MMS officials will also use vendors to develop future RMP systems, Dial said.

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