Technology firm IBM has secured a contract from the Australian Department of Defence (DoD) to provide the initial design of the Defence Enterprise Resource Planning (ERP) programme.

The ERP programme is part of the DoD’s information communication technology transformation project.

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Through the programme, the department aims to modernise capabilities of the Australian Defence Force and build high-performing supply chains.

Under the A$95.5m ($67.21m) contract, IBM will provide system integrator services to deliver the design phase of the first tranche of the capability.

In addition, the contract will include the high-level design for subsequent ERP tranches.

The initial capability for financial reporting under the Defence ERP programme is expected to be rolled out next year. The logistics and maintenance capability will follow in 2022.

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In a statement, the DoD said: “The programme will progressively deliver solutions that will affect every defence member and transform the way defence does business.

“ERP will modernise, integrate and transform defence’s approach to managing its finances, human resources, logistics, engineering, maintenance and estate.”

The programme is expected to aid in the decision-making process by providing a near real-time view of critical information across the defence sectors.

The first tranche of the ERP programme is intended to provide enterprise logistics and land materiel maintenance functions.

According to media sources, Accenture was also under consideration for the system integrator services contract.

The ERP project is expected to cost more than A$1bn ($703.81m) over a period of eight years, itnews.com.au reported.

Last year, IBM won a contract to serve as a major technology partner with the Australian Government.

For the DoD, this contract will improve the current arrangements and allow it to ‘change the profile of the technology over the next five years’.