Canada – Replacing Phoenix Pay System Cheaper Than Fixing Mess

Replacing Phoenix pay system cheaper than fixing its mess will be, PBO reports

The cost of a new pay system for federal civil servants should pale in comparison to the cost of stabilizing the failed Phoenix system, says a new report from Parliament’s spending watchdog.

Cleaning up the mess Phoenix has made will cost $2.6 billion and take another four years, the Parliamentary Budget Office told the House of Commons Thursday. Replacing it? A comparatively modest $57 million.

Much, however, depends on the complexity of the new system and any add-ons the government orders to take into account anything beyond the tens of thousands of rules currently used in calculating pay for federal employees, the PBO said.

“Pay-system software must be able to apply all relevant pay rules to calculate the pay of each employee,” the PBO said in a summary of its report. “The greater number of rules, the greater the difficulty in configuring or customizing a pay system.”

The $57-million price would be spread over six years and includes the cost to buy a new pay system, thoroughly test it and then train people to use it.

Though the new system will need proper data, extracted from a stabilized Phoenix, which is where the big anticipated expenses are.

Included in the PBO’s estimate for replacing Phoenix are costs for procurement, testing and training — considered one-time expenditures.  – Canadian Press

read full article here

Sigh….$2.6 billion spent and they could have bought one for $57 million?

This is why governments should have nothing to do with running any kind of business.

Previous related post here


Print Friendly, PDF & Email

Leave a Reply

enter code *

This site uses Akismet to reduce spam. Learn how your comment data is processed.