Big Blues

The Campbell administration has put the knife in a major potential information technology deal with IBM Canada Ltd., Public Eye has exclusively learned. On January 31, the administration told staff it had select the company to provide mainframe, hosting and data center services to the provincial government. At the time, workplace technology services assistant deputy minister Jill Kot said "in the next steps of the project we will undertake due diligence and commence contract negotiations" with the company. But that's when the deal went sour.

According to a message sent on July 4 by Ms. Kot, "The Province no longer believes that it will be able to proceed to a Final Contract with IBM Canada Ltd. Therefore, the Province has served notice to IBM Canada Ltd. today and exercised its right to terminate negotiations for this Project."

So who will be getting that contract, you may wonder? Why that would be EDS Canada Inc. - which was awarded a controversial contract by the government in November 2004 to maximize the province's revenue collection services. According to recent report by the province's auditor general John Doyle, thanks to inaccurate baseline information from the ministry of health, EDS received "unexpected 'windfall' profits" from that deal. And EDS experienced "delays and increased costs" in developing a revenue management system for the province, that resulted in the company "negotiating an extension to certain delivery deadlines." The Campbell administration hasn't yet responded to a request for comment placed Monday morning. The following is a complete copy of the aforementioned messages.

***

Memorandum
Ministry of Labour and Citizens' Services

Ref: 50336
Date: January 31, 2008
To: Workplace Hosting Services Staff
Re: Hosting Strategic Transformation and Mainframe Services (STMS) Project
SUCCESSFUL PROPONENT SELECTED

I would like to announce that the Hosting Strategic Transformation and Mainframe Services (STMS) Project Evaluation team has selectd IBM Canada Ltd. as the Successful Proponent. Subject to the signing of the Letter of Intent, IBM Canada Ltd. will be invited to move forward to the next stages of establishing a long-term relationship with the Province to provide hosting and data center services.

IBM Canada Ltd. was selected on the basis of their qualifications, expertise and proposal.

In the next steps of the project we will undertake due diligence (detailed verification of the IBM Canada Ltd. Solution and of STMS service) and commerce contract negotiations. Over the next few months we will be working very closely with IBM Canada Ltd. to look at all the areas of their proposed Solution. This also will include detailed planning of the STMS transition.

Workplace Hosting Services' staff will have an opportunity to meet the representatives of the IBM Canada Ltd. in an information session in the next few weeks. Further details regarding this session will be communicated to you as soon as possible.

We will continue to communicate with you on a regular basis on the status of the process via both regular information sessions and various other communications. If you have any questions or concerns, please discuss them with any member of the project team, your supervisors, or use the anonymous feedback link on the Workplace Technology Services' web site at: http://gww.mser.gov.bc.ca/WTS/JSP/feedback.asp. We will make every effort to respond as quickly as possible.

I want to emphasize that we will be updating you on an on-going basis, and both your managers and myself will be available to answer questions or for discussion.

Sincerely,

Jill Kot
Assistant Deputy Minister

cc: Wayne Jensen, ADM Strategic Infrastructure
Darlene Thorburn, BCGEU
Jane Stewart, BCGEU

***

Ref: 5109
Date: July 4, 2008
To: Workplace Hosting Services Staff
Re: Strategic Transformation and Mainframe Services (STMS) Project - JSPRFP # SATP-231

Further to my commitment to keep you information regarding the STMS Project, this memorandum outlines a change to the status of the Project and on the Province's negotiations with IBM Canada Ltd.

The Province has conducted a checkpoint of the due diligence activities and the solution presented by IBM Canada Ltd. for the STMS Project. The Province no longer believes that it will be able to proceed to a Final Contract with IBM Canada Ltd. Therefore, the Province has served notice to IBM Canada Ltd. today and exercised its right to terminate negotiations for this Project.

In a Joint Solutions Procurement (JSP) process, a vendor-in-waiting is identified who may, should negotiations fail, be asked to sign a Letter of Intent to commence due diligence processes with the Province. The Province has opted to proceed with this approach and notified EDS Canada today.

You may ask what this means for you and for the Project. The objectives of the procurement remain unchanged; however, the succesful proponent is now EDS Canada. The Province will be engaging with EDS Canada and will shortly begin with the remaining phases of the JSP process with a view to conclude a Final Contract for the services.

I would like to ensure you that we are commited to a great outcome for this procurement for both our employees and the Province. I ask for your patience as the team re-aligns and commences activities with EDS Canada.

If you have any questions regarding the Project, please contact Brad Kocurek. If you are approached by IB< Canada or Telus regarding this project, please decline to comment as we are still in a procurement process. IBM Canada has been offered a formal debriefing.

We will be updating you as more information becomes available. Thank-you.

Sincerly,

Jill Kot
Assistant Deputy Minister

cc: Wayne Jensen, ADM Strategic Infrastructure
Darlene Thorburn, BCGEU
Jane Stewart, BCGEU

Leave a comment

Copyright © 2004 - Public Eye Mediaworks. Reproductions of any portion of this Website are permitted only with the expressed permission of Public Eye Mediaworks.
Canadian Web Hosting graciously provided by dotcanuck Web Services. Layout and graphics courtesy of Art Department Design.