Canada – Phoenix Costs Soars By Another $137 Million, Paid To IBM

Phoenix cost soars by another $137M, paid to IBM

The federal government continues to pay millions of dollars more than expected to IBM to run the troubled Phoenix pay system, despite its many problems.

Since the start of 2019, the company has received at least another $137 million, according to the federal government’s online procurement site Buy and Sell, under a new agreement that came into effect in March.

The deal marks the 46th amendment to the initial contract, signed in 2011, with the multinational company which was responsible for the payroll system’s implementation. The total value of the contract has since increased from $5.7 million to more than $393 million.

Phoenix has been mired in controversy since its introduction in 2016, causing myriad problems including under-, over- and non-payment for hundreds of thousands of public servants. –  CBC News

read full article here

Only a government would continue throwing millions of dollars into what is turning out to be a bottomless money pit.  The private sector would have never even considered spending $400 million on a pay system.  Its the government system of throwing more and more money at a problem hoping to fix it.

Eventually, they reach a point of no return.  Too much money has been spent to quit.  Just keep throwing that money.

Think of Ontario’s E-Health. Its is exactly the same thing.

Nobody is ever held responsible.

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One Response

  1. Jake Gittes
    Jake Gittes at | | Reply

    Having sold major systems into all levels of government, the only thing I see here is a continuing changing of requirements on the part of the government.

    If you never ask a company to change the design mid – project (outside of specified parameters stipulated in the contract) the responsibility for making it work, is wholly born by the contracting company.

    If IBM is billing for “over and above” it is because the government keeps changing the scope of the project.

    And while I believe that with large organizations there are specifics that need customization, there are also off the shelf products that are quite capable as well…

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