Phoenix IBM and systems upgrades


This note focuses on vendor support on the Phoenix file (IBM / Innovation Challenge) as well as the Phoenix pay system software upgrade (PeopleSoft 9.2).

All questions related to Next Generation pay solution should be directed to the President of the Treasury Board.

Suggested responses

If pressed on the upgrade to the Phoenix system:


IBM contract and amendments

In June 2011, IBM was awarded the contract for the new Pay System through an open and transparent bidding process. Since then, there have been 47 amendments to the original contract, for a total contract value of $407.5M (taxes included). Amendments are a normal procurement process and were anticipated at the time of contract award. The 47th amendment will be posted on in mid-December, 2019.

The most recent amendment was issued in November 2019, and was required to purchase software licenses and to continue receiving maintenance and support services essential for pay stabilization which also includes the upgrade of the software used by the Phoenix pay system to PeopleSoft version 9.2.

Notice of proposed procurement

Public Services and Procurement Canada (PSPC) launched a procurement process in August 2018 to engage the private sector in innovative solutions to help stabilize the pay system.

Industry has been consulted in several areas identified as key to reaching stabilization. These are: Robotic Process Automation (RPA), HR Processes, Lowering the Queue, Improving User Experience, Enhanced User Access Management, Training, and Accelerator Services:

Phoenix System upgrade (PeopleSoft 9.2)

In 2015, the Oracle software vendor announced that it would no longer support the Phoenix pay system software, PeopleSoft 9.1. The upgrade to PeopleSoft 9.2 will ensure that PSPC continues to receive software patches, fixes, and tax rate updates that Phoenix requires to generate payroll accurately.

The PeopleSoft 9.2 upgrade consists of implementing a new version of the PeopleSoft application with limited impact and disruption to operations and users. The scope of the project is limited to the Pay System (Phoenix) and does not include upgrading the departmental HR Systems. The PeopleSoft 9.2 upgrade is progressing as planned with extensive testing with departments and agencies currently underway.

PSPC estimates that the overall upgrade is expected to take 18 to 24 months (including the planning phase) with a target go live in September 2020.

In Service Support: Re-procurement

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