8common collars contract with Australian Government’s Department of Industry, Innovation and Science
8common has secured another contract with the Australian Federal Government, this time with its Department of Industry, Innovation and Science.
8common (ASX: 8CO) has collared a contract with the Australian Federal Government’s Department of Industry, Innovation and Science worth at least $544,754 over three years.
Under the contract, 8common’s wholly-owned subsidiary Expense8 will deliver its cloud-based employee expense management platform across the department and its shared services customers.
“We have been very focused on delivering a best of breed solution, which works cohesively with other Department of Industry, Innovation and Science share service offerings, which include Aurion and TechnologyOne,” 8common executive chairman Nic Lim said.
“We look forward to onboarding the agencies and supporting their benefits realisation ambitions,” he added.
There are two components to the contract, with the first involving the implementation of Expense8 to the department itself, which is expected to be worth $544,754 (including GST) over three years, with an option to extend the contract a further two years.
The second part of the contract allows the department to provide a shared offering to other agencies, which will have a financial impact, but at this stage, 8common is unable to clearly state how much this will be.
However, 8common did comment that given the number of agencies involved, the revenue could be “substantial”.
According to 8common, 117 agencies across New South Wales, the Northern Territory and Federal Government currently use Expense8.
Within the Federal Government, alone, Expense8’s Travel and Expense Management platform has more than 11,000 active cards and 16,000 employees across 14 agencies.
“The Expense8 Corporate Travel module offers a unique pre-trip approval function that lets employees easily plan and book corporate travel,” 8common explained.
“The module also includes an easy and secure approval process for both managers and employees to meet strict government compliance requirements.”
In addition to government agencies, Expense8 has been rolled-out at some large corporations including Woolworths, Mitre10, Amcor and Rabobank.
During the March 2019 quarter, 8common reported an 87% year-on-year increase to its operating cash flow with cash receipts of $1.066 million.
By early afternoon, 8common’s share price was up more than 6% to $0.17.