$53m Super City IT Project Not Put Out To Tender

Labour's Auckland Issues spokesperson Phil Twyford is questioning why a $53.8 million computer contract for the Auckland super city was not put out to tender.

The contract was awarded to the German multinational firm SAP after an internal evaluation, according to documents released by the Government.

The contract with SAP is part of a $62.3 million project to provide an integrated information technology system for the Auckland Council.

Phil Twyford said he thought Auckland ratepayers would be shocked to hear that a contract of this size was not put out to competitive tender.

"Aucklanders will never know whether they got value for money for the $53 million of their rates being spent on this project because it wasn't put out to tender.

"This was a secret deal cooked up behind closed doors.

"We'll also never know whether a New Zealand company could have competed for the business. I am sure a number of firms would have walked over broken glass to bid for a $53.8 million contract. That is a lot of local jobs.

"Public sector procurement rules require open tendering especially with big or risky projects. I would have thought an ICT contract worth this much would have ticked both those boxes.

"This raises concerns about the quality of decision making going on behind closed doors at the Auckland Transition Agency."

Today's Sunday Star-Times reports Auckland City's chief information officer Ian Rae, "wrote to the ATA that a limited or extended tender would not allow time to deliver the required results. However, any less robust process could leave possible exposure to litigation. Rae recommended any decision on purchasing processes should be assessed by the Office of the Auditor-General."

"Surely with this much ratepayers' money being spent it would have been prudent to run an open, competitive tender and consider all the options? But what seems to have happened is corners were cut under time pressure, and they made an expedient decision to go with a particular supplier because some of the old Councils already used it.

"For the last year Aucklanders have been concerned about the Government's decision to corporatise 75% of Auckland local government because it would lead to decisions being made behind closed doors and a lack of public accountability. This jobs for the boys behaviour is exactly what people feared.

"Regardless of whether the ATA satisfied itself this secret deal was OK, Auckland ratepayers are still paying more than they should have and local IT firms were shut out of a chance to bid on a $53.8 million job.

"Local Government Minister Rodney Hide needs to explain to Auckland ratepayers why he has allowed the ATA to abandon competition for this tender and squander the obvious savings, and must immediately release to the public all the documents concerning this contract and the decision not to put it out to tender, including letters of concern from Auckland Councils."

ENDS

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