The Finnish Defense Forces have struck a significant deal with Accenture, worth an estimated 98 million euros, to modernize their SAP system. The procurement, which was announced in December, involves upgrading the system to S/4 Hana Defense & Security version. Islet Group, Neomore, and Agility Oy will serve as subcontractors for Accenture, with Accenture also taking responsibility for application maintenance and further development.
The procurement unit for the Defense Forces, the Logistics Command, oversaw the process, ultimately receiving approval from Minister of Defense Antti Häkkänen. The total value of the seven-year framework agreement, excluding value-added tax, is reported to be 79 million euros.
The decision to upgrade the system comes as the current SAP ECC-based PVSAP enterprise resource planning system is due to reach its end-of-support in late 2027. The new SAP version, referred to as PVERP2.0 by the Defense Forces, will replace the outdated system. Siemens originally supplied the current system, with Accenture taking over as the supplier in 2008.
While the procurement process followed a procurement-like negotiation procedure, it deviated from traditional public procurement law due to its classification as a defense and security procurement. The Defense Forces justified this classification by highlighting the critical nature of the software and its involvement in processing classified information.
The acquisition of the SAP upgrade underwent a rigorous approval process before reaching Minister Häkkänen’s desk. It received support from the Commercial Leadership Group of Defense Administration in August, followed by approval from the Government Finance Committee in September.
The decision to prioritize quality over price in the procurement was evident, with quality accounting for 65 percent of importance and price for 35 percent. The overall aim was to ensure the acquisition met the defense and security needs of the Finnish Defense Forces.
This SAP upgrade marks a significant investment by the Defense Forces, with life cycle costs estimated to exceed one hundred million euros by the early 2030s. The investment is crucial for maintaining and enhancing the defense capabilities of the Finnish Armed Forces.
The agreement with Accenture and its subcontractors is expected to result in an advanced and efficient SAP system that will cater to the evolving needs of the Defense Forces. As the modernization project progresses, the Finnish Defense Forces will be better equipped to meet their operational requirements securely and effectively.
With the SAP upgrade set to commence, the Defense Forces are taking proactive steps to ensure their technological foundation aligns with their military objectives. By investing in cutting-edge software solutions, the Finnish Defense Forces demonstrate their commitment to staying at the forefront of modern defense capabilities.
