Implementation of the Queensland Health Payroll System

Question: Describe about the Implementation of the Queensland Health Payroll System. Answer: The Queensland health department had been using payroll systems that were established under Lattice and ESP software that had been implemented as from 1996. Therefore, the state saw the urgency to move on to a new, faster and reliable platform for their payroll system to replace the previous one. Since all government operations were based on the new and standardised SAPs ECC5 and Infors WorkBrain software platforms, Queensland health decided to implement the new platforms for their payroll systems. To implement the project, Queensland Health contracted IBM as the prime contractor in conjunction with Corptech, a government service provider. Poor governance of the project implementation began when IBM was hired to take on the payroll system. An inquiry carried out by former Supreme Court Justice Richard Chesterman, found out that the states decision to settle for IBM was ill-advised, mainly by lack of meticulousness on the state officials part. It was found that, Terry Burns, a former employee of IBM was appointed by the Queensland government to assist in the selection of a prime contractor to take over the payroll system upgrades. Burns shared crucial information with IBM, ideally to make it more favourable for the upgrade tender. IBM placed its bid price way below the competitors. The evidence showed that IBM presented a low price to win the tender which did not truthfully express the cost estimates for the whole project. Upon been awarded the tender, IBM was paid $25.7 million for the system upgrade and a further $416.6 million for maintenance over 3 years. Despite been advised by solicitors to sue IBM for breach of contract for deficient and late delivery, Queensland government reached a negotiable agreement with IBM. The settlement was binding and therefore Queensland cannot recover any damages from IBM. References LeMay, R., 2013. Anatomy of Qld Health IT disaster: IBM should never have been appointed. Delimiter. QC, T. 2013. Queensland Health Payroll System Commission of Inquiry. Queensland Health Payroll System Commission of Inquiry.