Tuesday, May 20, 2008

Outsourcing error left taxpayers at risk

The contract refresh prompted by the erroneous estimates "has already indicated that all of the relevant information to assess value for money may not yet be available," he said.

After the potential for windfall profits became clear, even though there was an overall cap on potential profits, the deal was renegotiated "to align payments to EDS more closely with those originally anticipated."

The company opted to go along. The two-year extension suggests it's happy with the arrangement.

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