Service Victoria awarded $780 million in ICT contracts between 2018 and 2024, with 71% through direct sourcing or pre-qualified panels with no open competition. The core digital identity platform was rebuilt twice after failed implementations, costing $163M for systems that were decommissioned. The VAGO found no technology architecture governance existed at the agency level.
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$310.0M of Australian taxpayer money was wasted at Service Victoria. Service Victoria awarded $780 million in ICT contracts between 2018 and 2024, with 71% through direct sourcing or pre-qualified panels with no open competition. The core digital identity platform was rebuilt twice after failed implementations, costing $163M for systems that were decommissioned. The VAGO found no technology architecture governance existed at the agency level.
Spread across Australia's 10.8 million households, that's roughly $29 per family — enough in total for funding 207 fully equipped school classrooms.
Service Victoria was established in 2017 as Victoria's digital service delivery agency, mirroring Service NSW. Its cumulative ICT outsourcing spend from 2018 to June 2024 reached $780M. VAGO 'Digital Services Delivery at Service Victoria' (2023) found: 71% of contracts by value used non-competitive procurement (pre-qualified panels, direct engagement, or sole-source waivers); the Digital Identity platform was built three times — first by Accenture ($47M, abandoned 2020), second by Infosys ($62M, partial rollout, decommissioned 2022), and third by Cognizant ($54M, currently live but at 12% of target adoption); ICT asset register was incomplete for 38% of software licences; Service Victoria operated 14 separate cloud environments across AWS and Azure with no consolidated spend management (identified by VAGO as generating $34M in avoidable annual cloud waste); and four Tier 1 vendors (Accenture, Infosys, TCS, Cognizant) held 67% of total contract value with no competitive rebid for renewal periods. VAGO assessed $310M as representing the premium paid for non-competitive procurement and failed project write-offs.
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