The Victorian State Ombudsman tabled his report titled “Investigation into ICT Enabled Projects – November 2011” in which he analysed the performance of 10 high-profile publicly financed projects. The findings of the Ombudsman’s report are fascinating and today I would like to focus, in a bullet point and short format, on his findings as relate to the Myki project.

  • A 2004 Business Case by the Transport Ticketing Authority (TTA) forecasted total expenditure of $741.9 million over the life of the project (2004-17).
  • Project costs revised up to $999 when a vendor was appointed to develop the system in 2005.
  • In April 2008, the budget was increased to $1.35 billion (an increase of 35% in just under 3 years).
  • Under the terms of the original contract, the system was to be fully operational by July 2007. Full implementation is yet to be achieved and the project is some four years behind schedule.
  • Until two years into the project (when the project failed to meet its two years delivery deadline) the board of the TTA had a single board member with relevant ICT projects’ experience.
  • In the initial evaluation of the six tenderers, only the successful bidder was unable to evidence a proven solution: all others nominated sites where their solutions were in place.

Corruption or stupidity? Either way the cost will be covered using my tax money.

For more information regarding the general trends associated with Transportation Infrastructure projects read my earlier post on Bent Flyvbjerg’s research on Cost Overruns in Transport Infrastructure Projects.

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