DOD takes next step in military HR consolidation

The Defense Department on Friday awarded a $281 million contract to Northrop Grumman Corp. to develop and implement the Defense Integrated Military Human Resources System.

The Space and Naval Warfare Systems Command in San Diego is leading the effort for DOD. Northrop Grumman Information Technology Inc. of McLean, Va., will work on DIMHRS at the command's IT Center in New Orleans.

DIMHRS will be a single payroll and personnel system for all active and reserve military units. DOD expects the system will replace roughly 88 personnel and pay systems when it's fully operational in September 2013.

Defense officials have never divulged how much the department expects to spend on the HR consolidation, but industry analysts have put the price tag at upwards of $1 billion.

Last September, the SPAWAR IT Center awarded $1 million contracts to propose DIMHRS systems specifications, perform risk assessments and draft program management plans. To win the Phase 2 development contract, Northrop Grumman bested Computer Sciences Corp., IBM Corp., Lockheed Martin Corp. and PricewaterhouseCoopers LLP.

The competitors submitted their proposals in December. The original DOD plans had called for award of the Phase 2 contract in June.

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