NewPay: The first initiative in OMB’s new shared services model

May 9, 2019

The US federal government is on a mission to streamline its operations, and agencies are being asked to transform the way they operate to support the mission and achieve higher levels of efficiency.

In late April, the Office of Management and Budget issued a shared services policy designating four agencies as leads in its technology standardization initiative.

Quality Services Management Offices, or QSMOs, have been designated to provide common resources to government agencies as an alternative to agencies having to design and build their own efforts.

The four QSMOs are:

  • The General Services Administration, which will oversee a human resources marketplace
  • The Department of Treasury for financial services
  • The Department of Health and Human Services for grants management
  • The Cybersecurity and Infrastructure Security Agency for cybersecurity

Agencies must agree on standards for future shared services. Within 30 days, the 24 Chief Financial Officers Act agencies must appoint a senior point of contact who is accountable for the strategy’s adoption.

Services like payroll, finance management, and travel cost more than $25 billion annually. By eliminating redundant contracts and technology between agencies, the OMB estimates the government could save from 5 to 30 percent.

GSA is addressing aging and outdated payroll systems with NewPay—its first initiative as a QSMO for civilian HR services. The NewPay $2.5 billion, 10-year blanket purchase agreement (BPA) has been awarded to software-as-a-service solutions for which federal agencies can place task orders.

According to a release, “The BPA uses common, governmentwide standards built collaboratively with current payroll providers and subject matter experts from across government. These open standards allow the government to adopt innovative commercial solutions and gain efficiencies and economies of scale.”

The Federal CIO has noted that she is “look[ing] forward to seeing federal agencies have the opportunity to utilize leading business capabilities and dedicate greater agency focus on mission.”

Federal workers need to be able to solve complex HR and payroll problems. Learn more about the NewPay software-as-a-service (SaaS) solutions and services for payroll and work schedule/leave management offered by Infor, Grant Thornton, and other partners.

  • Federal Government
  • Public Sector
  • North America
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