21st Century Project
In 2010, the State Controller’s Office (SCO) hired SAP Public Services, Inc., to develop, test, deliver, and implement the 21st Century Project system (also known as MyCalPAYS). Started in 2006 by BearingPoint and continued by SAP, the project was the largest payroll modernization effort in the nation, intended to replace 30-year-old legacy systems and improve staff management processes such as payroll, benefits administration, and timekeeping for all 240,000 state government employees.
In February 2013, SCO terminated its $90 million implementation contract with SAP after an unsuccessful eight-month pilot involving 1,500 state employees. In November 2013, SCO filed a lawsuit against SAP. SAP later filed counter-claims against SCO. A June 6, 2016, settlement agreement resulted in SAP paying SCO $59 million and abandoning its own claims against SCO in the amount of approximately $23 million. The $59 million settlement was distributed to the state’s General Fund and a special fund, using the same proportions established to support the 21st Century Project.
SCO is now closing out the 21st Century Project and completing a post-implementation evaluation report to the California Department of Technology. SCO will then assess current information technology and the latest industry standards, and begin the process of re-engineering a new human resource management and payroll system.