Federal Government to review all major IT contracts

Review will look at all significant IT contracts worth more than $10 million. 
“ABS put too much faith in IBM”

By Leon Spencer (ARN) 17 February, 2017
http://www.arnnet.com.au/article/614443/federal-government-review-all-major-it-projects


The Federal Government is set to review all of the significant IT contracts it 
has with its external providers as part of a new drive to deliver greater 
transparency of projects funded by its $6.2 billion annual tech spend.

The move will see a special office within the Government’s Digital 
Transformation Agency (DTA) review all non-corporate Commonwealth entities and 
all active projects over $10 million in value or those that engage a large 
number of Australians.

This will see it investigate contracts similar in scale and nature to the deals 
behind IBM’s management of the Australian Bureau of Statistics’ 2016 Census 
portal project and the Australia Taxation Office’s engagement of Hewlett 
Packard Enterprise (HPE) for its storage infrastructure – both of which 
ultimately ran into far-reaching technical issues.

It is understood that the DTA’s Digital Investment Management Office will 
review up to 100 IT projects from now until mid-2017, in a bid to deliver 
greater transparency around many of the government’s larger-scale IT projects.

The DTA is expected to deliver a report on the review to the government by 
mid-2017 on the costs, benefits, risks and the status of the initiatives 
associated with the projects in question

"The DTA will ensure we're investing in the right technology projects, we can 
track their implementation, and know they will deliver on the public policy 
benefits they promise," Assistant Minister for Digital Transformation, Angus 
Taylor, said in a statement.

"This is more than a review, its ongoing oversight, and it will provide 
unprecedented visibility and centralised management of IT projects," he said.

One of the key capabilities of the expanded DTA will be to target technology 
assistance to government departments and agencies, and remediate projects.

"We can always do better - better impact for government by doing more with 
every dollar and better impact for citizens by providing easier-to-use 
services," he said.

The creation of the Digital Investment Management Office, which is headed up by 
former Department of Finance Assistant Secretary (Investment, Capability and 
Assurance Branch), Andrew Woolf, comes four months after Taylor flagged plans 
for a new program management office.

On 28 October 2016, as the Government’s Digital Transformation Agency arose out 
of the former Digital Transformation Office, Taylor announced the new agency’s 
agenda, revealing that it would manage a whole-of-government ICT program 
management office, which would oversee all “significant” ICT and digital 
investments.

The move to review the Federal Government’s IT contracts comes after a series 
of high-profile mishaps arising from IT contract arrangements stuck between 
government entities and external IT providers.

Most recently, Hewlett Packard Enterprise (HPE) has been involved in a 
drawn-out effort to mop up the fallout of a major storage infrastructure 
failure and subsequent systems outages at the Australian taxation Office (ATO).

Since the initial outage, which struck on 12 December, 2016, until early 
February this year, the ATO intermittently took services offline as it worked 
with HPE, one of its IT contractors, to replace the failed 3Par storage 
hardware – which had been upgraded in 2015 by HPE – and restore systems to full 
capacity.

The outage and the resulting efforts to rectify the technical issues 
subsequently prompted the ATO to engage PricewaterhouseCoopers to conduct an 
independent review of the incident, while HPE also undertook an internal 
investigation over the matter.

Earlier last year, it was IBM that was entangled in a high profile technical 
mishap, with the online 2016 Census project it was contracted by the Australian 
Bureau of Statistics (ABS) to lead, taken offline after being hit by a series 
of Denial of Service (DoS) attacks.

That event saw IBM representatives face questions during a parliamentary 
inquiry into the problems that plagued the portal on Census night.

It also saw the external IT services provider subsequently make a "very 
substantial financial settlement," according to Prime Minister, Malcolm 
Turnbull, in relation to the estimated $30 million price tag that resulted from 
the fallout 2016 Census debacle.

“ABS put too much faith in IBM," Turnbull said in November last year.

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