Victoria's transport department's handling of the myki system rollout has been scrutinized in a recent audit, revealing a series of missteps that led to a significant budget overrun and delay. The audit highlights a lack of proactive issue resolution, with the department accepting an unrealistic timeline and failing to address known problems before signing the contract with Conduent.
The contract, now valued at $1.96 billion, was signed in 2023 to install and manage the new ticket system across Victoria for 15 years. However, by June 2024, the department and Conduent were at odds over the contract and rollout schedule, resulting in a six-month standstill agreement. This dispute led to a $136.8 million budget increase and an 18-month delay, bringing the total cost to taxpayers to an estimated $1.96 billion.
The audit criticizes the department's failure to critically assess Conduent's delivery schedule, which was deemed overly optimistic and lacking in detail. This oversight contributed to the disputes and ultimately the project's significant setbacks. Furthermore, the department's delay in providing source code from the existing myki software hindered the smooth transition to the new system, exacerbating the delays.
Despite the setbacks, the audit notes that the program is now on track with its revised timeline, targeting tap-and-go payments to be enabled by mid-2027 and the entire system by mid-2028. However, the department acknowledges ongoing challenges, with the contractor HCLTech citing recent policy changes, including free travel for under-18s, as a reason for pausing its work, which directly impacts the rollout timeline.
This audit serves as a stark reminder of the importance of thorough planning and proactive issue resolution in large-scale infrastructure projects. Victoria's transport department must learn from these mistakes to ensure future projects are managed more effectively and efficiently, minimizing the risk of costly overruns and delays.
