Treasury begins modernization of its HR systems

The Treasury Department has begun an agencywide modernization of its human resources
systems with the rollout of common software at two of its bureaus.


The department has installed human resources software from PeopleSoft Inc. of
Pleasanton, Calif., at the Bureau of Alcohol, Tobacco and Firearms and the Office of the
Comptroller of the Currency.


The department estimates the net benefits from implementing a common agencywide system
at $271 million, said Kay Clarey, program director of Treasury’s Human Resources
System Program Office.


“The department wants to eliminate the overhead costs of maintaining the majority
of the legacy standalone human resource systems,” said Ann H. Albin, strategic
planning manager of Treasury’s HR Program Office.


In August 1996, Treasury learned that the IRS and Customs Service wanted to use
PeopleSoft to modernize human resource functions, such as compensation, salary, training
administration, career planning and employee labor relations.


Other bureaus had also talked independently to the company about using the product,
Albin said.


The department held a meeting with bureau human resources officials and information
systems managers to discuss modernizing its more than 90 human resource systems.


Treasury decided on PeopleSoft, purchased an agencywide license and developed a
10-year, $335 million system project, with $150 million allocated for investment costs and
$185 million for managing and operating the project, Albin said.


“We chose PeopleSoft because it was the most robust product in the federal
marketplace, the company was financially stable and it had the flexibility to run on
different platforms,” Albin said.


Treasury established the HR System Program Office to lead the effort and coordinate
implementation activities across bureaus.


The department chose ATF for the first PeopleSoft implementation because the bureau
had, as a result of a lawsuit, an urgent need to get the system running. Treasury
completed the ATF installation the third week of August last year, with the application
running there on a Digital Equipment Corp. Alpha 400 server, Albin said.


Treasury installed PeopleSoft at OCC in September. The department has plans to install
the application this year at the IRS, Mint and departmental offices; in 2000 at the
Financial Management Service, Customs, the Secret Service, Public Debt and the Inspector
General’s Office; and in 2001 at Engraving and Printing, the Federal Law Enforcement
Training Center and the Office of Thrift Supervision, Albin said.  

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