[IP] more on 500 MIllion and Counting

[David Farber <dave@xxxxxxxxxx>]

I bid soc sec modernization.

Begin forwarded message:

From: Paul Julien <p.julien@xxxxxxxxxxxxxx>
Date: July 12, 2004 3:13:56 PM EDT
To: dave@xxxxxxxxxx
Subject: Re: [IP] 500 MIllion and Counting
Reply-To: Paul Julien <p.julien@xxxxxxxxxxxxxx>

Dave:

OK let's see who has the biggest software development horror story, as
estimated by dollar loss.
I'll start off the competition by nominating the FAA and the FAA air  
traffic
control system project.  I don't have a good estimate, but many  
estimates of
the loss run in the $3B range.  This figure needs to be increased to  
correct
for inflation over the years.  I think this beats the Denver  
International
Airport baggage-handling computer system fiasco.

Can anyone top this?

Paul Julien

*


----- Original Message -----
From: "David Farber" <dave@xxxxxxxxxx>
To: "Ip" <ip@xxxxxxxxxxxxxx>
Sent: Saturday, July 10, 2004 7:26 AM
Subject: [IP] 500 MIllion and Counting


> Begin forwarded message:
>
> From: Tom Gray <tom_gray_grc@xxxxxxxxx>
> Date: July 10, 2004 6:00:25 AM EDT
> To: dave@xxxxxxxxxx, tom_gray_grc@xxxxxxxxx
> Subject: 500 MIllion and Counting
>
>
> This may be of interest for your IP list.
>
> It is not mentioned directly but this $500 million
> dollar computer system owned by the Ontario government
> is incapable of adjusting the social assitance rates.
> Receipients will be receving two lump sum payments,
> one this summer and one in the fall, to make up the 3%
> increase that the government has decided on.
>
> How can a computer system cost $500,000,000? Just how
> can training by itself consume hundreds of millions of
> dollars? Why if a program cost $500,000,000 to produce
> does it not work?
> ============================
>
> http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/
> Article_Type1&c=Article&cid=1089411015907&call_pageid=968332188492&col= 
> 9
> 68793972154
>
> ==========================
> How costly computer sparked a `nightmare'
> Social services system `inflexible from Day 1,' expert
> says
>
> Government estimates fixing flaws could top $10
> million
>
> RICHARD BRENNAN AND ROBERT BENZIE
> QUEEN'S PARK BUREAU
>
> It seemed like a good idea at the time.
>
> An ideologically driven, cash-strapped Conservative
> administration wanted to reduce social assistance
> costs and increase the role of the private sector in
> government.
>
> To that end on Jan. 27, 1997, then premier Mike Harris
> opted to enter what was touted as an innovative
> agreement with Andersen Consulting to revamp the
> Ministry of Community and Social Services' outdated
> computer system.
>
> But a two-year independent study of the $500 million
> computer system has concluded that it has been
> seriously flawed from the very beginning and virtually
> incapable of making timely changes.
>
> That became clear when it was learned the system,
> responsible for distributing welfare and disability
> benefits to 670,000 Ontarians, is unable to calculate
> a 3 per cent increase, the first rise in 11 years.
>
> It's going to cost at least $10 million to fix the
> problem - $3 million to correct the computer system
> and an additional $7 million to test it.
>
>
>
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