Mineral royalty system will run PeopleSoft app

Mineral royalty system will run PeopleSoft app

MMS is attempting to carry its systems into the 21st century, director Walt Rosenbusch says.

By Frank Tiboni

GCN Staff

The Minerals Management Service has chosen Andersen Consulting to modernize a system that manages billions of dollars in mineral royalties.

MMS last month awarded the seven-year, $47 million contract to the Chicago company to develop, install and run the Royalty Management Program's auditing and financial system, said Lucy Querques Denett, MMS associate director.

Since the early 1980s, MMS' Denver headquarters has used an X-90 mainframe from Hitachi Data Systems Corp. running IDMS from Computer Associates International Inc. to collect, account for and distribute mining rights, said Ken Madsen, MMS information technology project manager.

'These are aging systems that would be unable to help RMP achieve its future business objectives,' Querques Denett said. 'Andersen consulting will not only develop and install RMP's new financial accounting system but will also provide the technical foundation and support services.'

Andersen will use Financials for Education and Government from PeopleSoft Inc. of Pleasanton, Calif., as the core application. Besides the financial modules and a data warehouse, Andersen will design a workflow and draft data administration policies, he said.

The contract has a two-year base period and five one-year options.

During the first two years, Andersen will design and build the system, which will cost about $22.7 million.

During the option years, when MMS will pay the remaining $24.3 million, the company will run and support the royalty system, Madsen said.

Andersen will outsource the system's operation to Usinternetworking. The Annapolis, Md., company plans to run the system on a Hewlett-Packard L9000 server, Madsen said.

Knowing their role

'Andersen Consulting provided a superior technical solution,' said Milt Dial, the Royalty Management Program's re-engineering project manager. 'We felt that Andersen Consulting really understood our business. The firm's private-sector energy industry expertise; their commercial, off-the-shelf solution; and their operations and support services were superior.'

Since April 1997, MMS has been devising plans to carry its systems into the 21st century, MMS director Walt Rosenbusch said.

Aging computer systems, changing energy markets and the need to better align its enterprise with industry spurred an MMS re-engineering initiative, he said.

'The new business processes and technology support systems Andersen Consulting brings to MMS will have significant payoffs for our customers, including states, Indian tribes and allottees, the minerals industry and the American public,' Rosenbusch said.

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