Massive blow-out in Health IT procurement and management



17 Feb 2016 - In February 2016, the Auditor General found 79 variations to a computer services contract almost tripled its value in the first four years.

"The contract was initially valued at $44.9 million but due to 79 contract variations worth $81.4 million, the value, including the option to extend the contract, will now potentially exceed $175 million.

The number and value of the variations suggests Health did not properly plan the initial contract.

"Two variations to the contract totalling $41.5 million were arguably inconsistent with the purpose and terms of the initial contract and given their size should have been procured under a competitive public tender process to obtain assurance that value for money was obtained."