TechnologyOne slams NSW Govt department over lack of tender process

Could have fulfilled contract for a fraction of the $115 million the department will pay, spokesperson says.

TechnologyOne's (ASX: TNE) chief has criticised the NSW Department of Education for not allowing local technology companies to even bid for the department's latest $115 million ICT contract.

TechnologyOne's executive chairman, Adrian Di Marco, criticised the department for failing to offer the contract through a tender process.

Instead, he said, the department chose a provider through a panel which has become an "old boys club," which only considers a handful of multi-national corporations when selecting vendors.

"[The panel] have not gone back to the 'open market' and done a full market review in the last 15 years, to see what alternatives are now available," Di Marco said.

"What is unbelievable is that a decision of this size was made without testing the market - and therefore it is very unlikely that NSW taxpayers are getting anywhere near value for money."

The contract was awarded to SAP for systems that will include payroll, human resources and finance across schools and TAFEs.

Di Marco said TechnologyOne could have provided all the Department's needs for a fraction of the $115 million.

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