ICARE SIGNED $140 MILLION CONTRACT AFTER A ONE-WEEK TENDER: PROJECT NOW MASSIVELY OVER-BUDGET
Treasurer Dominic Perrottet’s scandal-ridden agency iCare awarded a $140 million IT contract in a seven-day tender, despite bidders having been warned that the rushed process would lead to ruin.
Emails obtained by the NSW Upper House show iCare’s senior leaders ignored the warnings even though multiple bidders withdrew from the tender, protesting the one-week timetable.
A consortium of two IT companies, Capgemini and Guidewire, ending up winning the contract having faced no competition.
The cost of building iCare’s new IT platform has since risen to $360 million, and the project is still incomplete.
The NSW Upper House is enquiring into Capgemini’s relationship with iCare’s then-senior leaders. iCare’s former CEO resigned in August after the inquiry heard that Guidewire paid for an undisclosed trip to Las Vegas he took in 2018.
NSW Labor’s Shadow Minister for Finance and Small Business Daniel Mookhey said the Treasurer must take responsibility for iCare’s latest disaster.
“iCare turned a deaf ear to many warnings about the risk of tendering a $140 million contract in one week,” Mr Mookhey said.
“This tender doesn’t pass the sniff test. It happened on the Treasurer’s watch.
“Dominic Perrottet must take responsibility. He should resign.”
Last year, an independent review of iCare said delays in building the IT platform was a major reason why NSW return to work rates collapsed. But an email reveals that one tenderer, who refused to bid, told iCare at the time:
“The time lines set out in the RFP document… appear extremely aggressive…[and]… Based on many, long-term Government client engagements, locally and globally, [our] opinion is that the RFP time lines are unrealistic,”
Mr Mookhey said:
“iCare chose the wrong company through a sham tender.
“Employers and sick and injured workers have paid the price for iCare’s awful mistakes.