Two software giants enter federal financial schedule

SAP and PeopleSoft, two major business software firms, now offer accounting systems to federal agencies through the government's only channel for core financial systems software, the General Services Administration announced last week.

GSA's Federal Technology Service added the two competitors to the Financial Management Systems Software (FMSS) Schedule, the mandatory schedule through which agencies must purchase accounting systems. GSA tests vendors' core accounting systems to certify that they comply with federal accounting standards. Including SAP and PeopleSoft, 11 vendors offer financial software on the FMSS Schedule.

Both SAP and PeopleSoft specialize in single computer systems that handle all of an organization's major business operations. Known as "enterprise resource planning" systems, they cover the gamut of business applications from finances to human resources to capital planning.

The FMSS Schedule will expire on Sept. 30. At that time, the Joint Financial Management Improvement Program, a federal panel associated with the federal Chief Financial Officers Council, will take over the testing and certification process for financial systems from GSA. Once financial systems are certified, they will be offered on the Group 70, IT Solutions Schedule, which is run by GSA's Federal Supply Service.

The Office of Management and Budget later this year will release a revised version of OMB Circular A-127, which governs financial systems rules.