29 May 2008

Smartcard costs hit $52 million

SPENDING on the federal Government's mooted welfare smartcard has reached $52 million, despite uncertainty over whether the $1.1 billion program will proceed.

New contracts worth nearly $10 million have been signed by the Department of Human Services since June, with most due for completion well before the end of this year.

This may signal a slowdown of work, pending the outcome of the federal election.

In June, Human Services Minister Chris Ellison effectively put the controversial Access Card on ice, as opponents claimed it would become a national identity card.

The project's lead adviser, Booz Allen Hamilton, collected $30.5 million in fees during the past financial year, including $5 million for the months of May and June, and a slimmer $5.2 million for the current four months to October 26.

Law firm Minter Ellison earned $6.2 million for its work over the year, with consultancy KPMG picking up $4 million for its monitoring and assurance duties.

Technology services provider SMS Consulting Group had a steady run of contracts, totalling $1.6 million, while IT services supplier Acumen Alliance earned $1 million during the year.

Of the current round of contracts, only Acumen is engaged beyond December 30; in July it won a new one-year $1.1 million deal to June 30.

Research and public relations firms ORIMA, Porter Novelli and Mediascape held contracts worth a combined $3 million over the past two years, while advertising firm HMA Blaze earned $143,000 for two weeks' work seeking public comment on the draft Access Card legislation.

The largest project contracts, covering systems and card issuance, are yet to be awarded, following tender processes early this year.

The department is also yet to issue tenders for transaction services and the supply of eftpos terminals.

The most expensive component of the project will be registering Australian residents for the access card, but most of that work will be carried out by federal government employees.

Registration was originally due to start in April next year.

AAP 4 Sep 2007

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