Friday 3 August 2018

NSW Roads & Maritime Services bungling and corrupt in 2018?


NSW Minister for Roads Maritime and Freight has a policy of sending IT jobs offshore?

With the national unemployment rate running at 5.4 per cent nationally in June 2018 and the New South Wales rate sitting at 4.8 per cent or 192,000 people, is the Minister for Roads Maritime and Freight & Nationals MP for Oxley Melinda Pavey secretly closing off employment opportunities for Australian information technology workers as a departmental cost-cutting measure?

These are not exactly the highest paying jobs in this country, averaging $46,000-$100,000 pa and, with the IT worker pool standing at est. 600,000+ nationally it is not as though there is an obvious scarcity of skilled workers available for hire.

So at first it was not easy to explain this...... 

The Daily Telegraph, 20 July 2018. P.2:

Leaked details of a meeting between Roads and Maritime­ Services and seven companies bidding for a $100 million IT contract contradict­ state government denials that it mandated a 30 per cent quota of cut-price overseas workers.

The February 13 meeting, convened by chief information officer Rob Putter, came six days after the RMS called for tenders to provide IT services, on the condition that a “minimum” of 20 per cent of jobs would be sent overseas in the first year and 30 per cent in the second year.

Three Indian firms, Tata Consultancy Services, Wipro, and Tech Mahindra, attended the meeting along with Fujitsu, Datacom, Accenture and Wollongong company itree, with 25 people in the room and 18 dialling in.

A source who attended the meeting said Mr Putter showed a PowerPoint slide titled RMS Pricing Principles which stated the RMS was “seeking to achieve the lowest­ possible cost” to provide­ the IT service.

The slide stated RMS’s “target offshore resource utilisation­” required 20 per cent of jobs offshore in year one, 30 per cent in year two and a “measured ongoing ­app­roach to increase offshore efforts” over the rest of the seven-year contract.

Photocopies of the slide were provided to attendees, who “discussed at length ... the need to offshore resources (jobs)”, the source said.

“The RMS personnel stated that it was mandated by the (Roads) Minister that to achieve the lowest price they need to seek offshore resources,” the source said. 

“This clearly makes a joke of the Minister’s denial that this tender mandated offshoring.” As The Daily Telegraph revealed last week, the RMS had called for companies to provide “development, testing, maintenance and service management for transport-related software applications and in-the-field hardware”.…..

The RMS announced Mr Putter’s resignation last week.

Despite NSW Government denials, the fact remains that it is highly likely that jobs were to be sourced overseas as the RMS IT operational budget blowout had reached $80 million in the 12 months to June 2018, following a $40 million blowout in the operational budget in the previous financial year.

It appears that Roads and Maritime Services has bungled its $1 billion IT systems upgrade with more bad news expected.

Dollars for mates?

Crikey.com.au, 2 August 2018:

New South Wales transport consultancy firm MU Group [MURPHY UDAYAN GROUP*] 
is under fire after six government contracts, none of which went to public tender, were awarded to the company after it hired former state roads minister 
Duncan Gay.

The Daily Telegraph ($) reports that the firm has been awarded contracts from the Roads and Maritime Services agency worth over $4.46 million after hiring the former department head as an “executive adviser” just weeks after Gay left parliament in late 2017. The firm has reportedly hired at least 11 former Roads and Maritime Services staff members, including two as directors, however Gay says he has “not been involved in any RMS contracts that MU have won”.

* Director and Founder of the MU Group Matthew Murphy is a former Roads and Maritime Service civil engineer in Project/Contract Management with extensive experience on infrastructure projects for urban roads, highways including Pacific Highway Upgrades.

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