Thursday, March 15, 2007

Accenture bites ATO for another $274m

THE Australian Taxation Office has gifted consulting services giant Accenture another $274 million worth of business as part of its ongoing Change Program technology update.

Accenture was handed a contract worth $224 million to build the Tax Office a new software platform to handle changes to superannuation laws.

The company would also be paid an additional $50 million to cover the cost of additional work under the Change Program resulting from function creep and shifts in tax law.

The lion’s share of the $50 million Change Program overspend is thought to also have been awarded to Accenture.

The $224 million superannuation systems contract was awarded to Accenture at the end of last month, with details released to newspapers this week.

Unusually for such a large federal government contract, the superannuation business was not put to an open tender process but awarded through a direct sourcing arrangement to Accenture.

Accenture also performed the deployment analysis for the superannuation system, though it is not clear how much it was paid for this work.

On November 1 last year Accenture was given a $2.5 million contract extension to cover further work on analysis for the superannuation deployment – a contract that was to expire on February 28. Then on February 28, it was awarded the $224 million superannuation

None of the more $540 million in contracts the ATO has awarded Accenture under the Change Program banner has been put to open tender.

ATO second commissioner Greg Farr told The Australian newspaper that Tax would send staff to work in a new Wollongong development centre planned by Accenture – to work alongside Accenture staff.

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