Kamco
Encyclopedia
Kamco is the company contracted to provide the myki
ticketing system for public transport in Victoria
, Australia
. It is a wholly owned subsidiary of the American company Keane Inc.
, and when the myki contract was awarded it described itself as "an alliance" of Keane Australia, Ascom
, ERG, and Giesecke & Devrient Australasia
(G&D), with Keane Australia providing "a single point of accountability" for Victoria's Transport Ticketing Authority
.
In April 2008, Vivian Miners, chief executive of the Transport Ticketing Authority
, quit his $545,000-a-year job. A report into the tendering process by Des Pearson, Victoria's Attorney General
, found the tendering for the ticket system had been conducted properly. Mr Miners owned about $150,000 of shares in Headstrong
, which was part of the Kamco consortium at the time it won the tender. Mr Miners' partner and former wife both worked for Headstrong
and ERG
, the Perth-based transport ticket company part of Keane
. An early alleged draft of the report, leaked to the media in 2008, detailed a series of alleged conflicts of interest, probity issues, backdating of reports and favouring of the eventual winning bidder Kamco, a subsidiary of the American IT firm Keane
.
The final report observed that "Keane had no corporate experience in developing, implementing and operating a ticketing system" and "barely demonstrated adequate capacity." The project has since gone over both time and budget limits.
.
attributed issues with the January 2010 roll-out to errors by Kamco, including "very silly mistakes" and "unacceptable" problems including a recall of 30,500 cards. Major operation problems included incorrect fare charging, cards that couldn't be activated and cards that wouldn't open entrance or exit gates.
/National
Coalition
announced a "warts and all" review of myki by Deloitte. This report has yet to be released as of February 2011. Other companies have claimed they can provide alternative technical solutions at lower cost, but the Public Transport minister Terry Mulder
said that it was not appropriate to consider these proposals until the Department of Treasury and Finance had costed the options in Deloitte's report. It could cost the government hundreds of millions of dollars to end its contract with Kamco early.
Myki
myki is the contactless smartcard ticketing system being introduced on public transport in Victoria, Australia. myki is designed to replace a number of ticket systems in Victoria, primarily the Metcard and V/Line ticketing systems...
ticketing system for public transport in Victoria
Victoria (Australia)
Victoria is the second most populous state in Australia. Geographically the smallest mainland state, Victoria is bordered by New South Wales, South Australia, and Tasmania on Boundary Islet to the north, west and south respectively....
, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
. It is a wholly owned subsidiary of the American company Keane Inc.
Keane (company)
Keane Inc a unit of NTT Data Corporation is a U.S.-based Information Technology services firm. It offers Application Services, as well as Infrastructure and Business Process Outsourcing solutions delivered through onsite, nearshore, and offshore resources....
, and when the myki contract was awarded it described itself as "an alliance" of Keane Australia, Ascom
Ascom (company)
Ascom Holding AG is a Telecommunications company specializing in "Mission-Critical Communication". The company focuses on the areas of Wireless Solutions , Network Testing as well as Security Communication Ascom Holding AG is a Telecommunications company specializing in "Mission-Critical...
, ERG, and Giesecke & Devrient Australasia
Giesecke & Devrient
Giesecke & Devrient is a German company headquartered in Munich that provides banknote and securities printing, smart cards, and cash handling systems....
(G&D), with Keane Australia providing "a single point of accountability" for Victoria's Transport Ticketing Authority
Transport Ticketing Authority
right|250pxTransport Ticketing Authority is a division of the Department of Transport in the State Government of Victoria, Australia. It was established in June 2003 to manage Victoria's interest in the OneLink Metcard ticketing system contract, and to procure and manage the new ticketing solution...
.
Procurement Process
In April 2008, Vivian Miners, chief executive of the Transport Ticketing Authority
Transport Ticketing Authority
right|250pxTransport Ticketing Authority is a division of the Department of Transport in the State Government of Victoria, Australia. It was established in June 2003 to manage Victoria's interest in the OneLink Metcard ticketing system contract, and to procure and manage the new ticketing solution...
, quit his $545,000-a-year job. A report into the tendering process by Des Pearson, Victoria's Attorney General
Attorney-General of Victoria (Australia)
The Attorney-General of Victoria is a ministry of the Government of Victoria with responsibility for the state's courts and tribunals. The Attorney General is a senior minister in the state government and the First Law Officer of the State....
, found the tendering for the ticket system had been conducted properly. Mr Miners owned about $150,000 of shares in Headstrong
Headstrong (company)
Headstrong is a global IT consulting company with presence across North America, Europe and Asia-Pacific, operating in more than 14 locations. It was formed in 2000 when Arjun Malhotra led Techspan was merged with James Martin Associates who today sits as Headstrong's chairman emeritus. Arjun...
, which was part of the Kamco consortium at the time it won the tender. Mr Miners' partner and former wife both worked for Headstrong
Headstrong (company)
Headstrong is a global IT consulting company with presence across North America, Europe and Asia-Pacific, operating in more than 14 locations. It was formed in 2000 when Arjun Malhotra led Techspan was merged with James Martin Associates who today sits as Headstrong's chairman emeritus. Arjun...
and ERG
Erg
An erg is the unit of energy and mechanical work in the centimetre-gram-second system of units, symbol "erg". Its name is derived from the Greek ergon, meaning "work"....
, the Perth-based transport ticket company part of Keane
Keane
Keane are an English alternative rock band from Battle, East Sussex, formed in 1997. The group currently comprises Tim Rice-Oxley , Tom Chaplin , Richard Hughes and Jesse Quin , who first played with the band in late 2007 during the concerts of the single The Night Sky...
. An early alleged draft of the report, leaked to the media in 2008, detailed a series of alleged conflicts of interest, probity issues, backdating of reports and favouring of the eventual winning bidder Kamco, a subsidiary of the American IT firm Keane
Keane
Keane are an English alternative rock band from Battle, East Sussex, formed in 1997. The group currently comprises Tim Rice-Oxley , Tom Chaplin , Richard Hughes and Jesse Quin , who first played with the band in late 2007 during the concerts of the single The Night Sky...
.
The final report observed that "Keane had no corporate experience in developing, implementing and operating a ticketing system" and "barely demonstrated adequate capacity." The project has since gone over both time and budget limits.
Cash Injection required
The Australian reported on 24 December 2007 that Kamco had requested a cash injection and wanted to change the contract to receive an accelerated payments schedule. To date Kamco has received $150m of the approx $750m spent.Dispute with ERG
Kamco sub-contracted installation and repair of myki equipment to ERG in an A$ 106 million contract which Kamco repudiated in June 2009. ERG separately sued Kamco, holding myki equipment hostage until "unpaid bills worth $1.8 million were settled", upon which Kamco launched a counter-claim in the Australian Supreme CourtHigh Court of Australia
The High Court of Australia is the supreme court in the Australian court hierarchy and the final court of appeal in Australia. It has both original and appellate jurisdiction, has the power of judicial review over laws passed by the Parliament of Australia and the parliaments of the States, and...
.
January 2010 roll-out
By early 2010, the state's political opponents were presenting figures alleging that "Melbourne has by far the most costly smartcard system in the world". The Labour Party's Public Transport minister Lynne KoskyLynne Kosky
Lynne Janice Kosky is a former Australian politician and senior minister in the Parliament of Victoria. She represented the electoral district of Altona in the Victorian Legislative Assembly for the Australian Labor Party from 1996 to 2010...
attributed issues with the January 2010 roll-out to errors by Kamco, including "very silly mistakes" and "unacceptable" problems including a recall of 30,500 cards. Major operation problems included incorrect fare charging, cards that couldn't be activated and cards that wouldn't open entrance or exit gates.
Review into myki 2010/2011
After the change of Government in the 2010 Victorian Election the incoming LiberalLiberal Party of Australia
The Liberal Party of Australia is an Australian political party.Founded a year after the 1943 federal election to replace the United Australia Party, the centre-right Liberal Party typically competes with the centre-left Australian Labor Party for political office...
/National
National Party of Australia
The National Party of Australia is an Australian political party.Traditionally representing graziers, farmers and rural voters generally, it began as the The Country Party, but adopted the name The National Country Party in 1975, changed to The National Party of Australia in 1982. The party is...
Coalition
Coalition (Australia)
The Coalition in Australian politics refers to a group of centre-right parties that has existed in the form of a coalition agreement since 1922...
announced a "warts and all" review of myki by Deloitte. This report has yet to be released as of February 2011. Other companies have claimed they can provide alternative technical solutions at lower cost, but the Public Transport minister Terry Mulder
Terry Mulder
Terence Wynne "Terry" Mulder is an Australian politician. He has been a Liberal member of the Victorian Legislative Assembly since 1999, representing the Colac-based electorate of Polwarth. He is currently Minister for Transport and Roads.Mulder was born in Colac, and attended Trinity College, but...
said that it was not appropriate to consider these proposals until the Department of Treasury and Finance had costed the options in Deloitte's report. It could cost the government hundreds of millions of dollars to end its contract with Kamco early.