The textbooks say that if the extent of outsourcing is high and the strategic value of the portfolio is also high, then a strategic partnership is required, in which "trust rather than incentives and penalties becomes an important mechanism to ensure that the service provider's interests coincide with client's interests". [Kishore et al, CACM vol. 46 No. 12 2003]
So Cockroach decided to treat the relationship instead as a war, bringing in a couple of his lackeys to wage it. I can't describe all the myriad acts of bastardry here but they prompted three site managers to resign in disgust and the result is that now over half the contract team are engaged in nothing more productive than contract management.
Part of the contract was a major item for the redevelopment of the legacy systems. This was tendered as a Unix solution. Cockroach insisted that an IBM mainframe solution be substituted. For the same price. The figures were gone over again and again and this was proved to be unfeasible. After a lot of name-calling, the contract was let to another firm, who had the advantage of not being in an existing relationship.
I knew that something was going on when I glimpsed the project plan. All the "milestones" were "start this". I kept looking through the MS Project output for actual deliverables. The first one was a week before the final deadline. I can start 20 dfferent projects by myself in an afternoon; it's getting them finished that takes all the time. Sure enough, nothing was delivered on time.
According to information obtained by the Senate Committee, the project, initially estimated to cost $40M (snort) has now spent twice that and allegedly needs another $60M to get finished. That's $140M. And it's already a year overdue.
The original contract was for three years with two options to renew for two more. That was six years ago; the contract has since been renewed twice. Now Customs started mumbling about awarding the contract to someone else. A quick count on my fingers showed that there wasn't enough time for that. Sure enough, Customs wants to renew for another to years. Since there is a number of people who think that the best outcome would be to walk away from Customs and leave them to wallow in their own excrement, contract negotiations should be interesting...
Oh, and they have hired Cockroach back as a highly paid "consultant". Jobs for the boys, you know.