The Federal Energy Regulatory Commission real-time management information to help with (FERC), an independent regulatory agency work-force planning efforts. within the Energy Department, was one of the In 2001, FERC decided to outsource the ERP first federal agencies to use an integrated enter- system to the private sector. Dubbert said,"FERC prise resource planning application from start to will pay less than $2 million for the hosting and finish, including human resources, base benefits, day-to-day management of its human resources time and labor, and payroll. In October 2000, and financial operations, including transition and FERC implemented PeopleSoft Financial production costs, under a five-year contract." The Management for Education and Government key reasons to outsource were to relieve FERC software, including the general ledger, payables, from maintaining, upgrading, and distributing soft- and purchasing modules. The two systems cost ware and services to its customers, who pay a peri- about $5 million for implementation and mainte- odic fee. FERC moved to this arrangement after nance. According to Janet Dubbert, FERC's it began re-engineering its operations using director of management administrative and pay- PeopleSoft Human Resources Management for roll support, the agency's decision to acquire the the U.S. federal government. After contracting systems was prompted by a couple of issues. First, with PeopleSoft, Inc., late in 1998, the organiza- the Department of Energy would no longer sup- tion went live with the human resources applica- port FERC's human resource, time and atten- tion in March 1999. With outsourcing, FERC dance, and payroll functions. The department hopes to focus on its core functions of adding new made the move as part of its efforts to streamline human resources and financial features, such as operations under the National Performance training and budget and accounts receivable. Review. Second, The ERP systems allow the Do you agree with FERC's decision? agency to add functionality at its own pace. What other benefits can FERC achieve with Because the systems are integrated, they provide this outsourcing agreement? "