MoD writes off £118m on ditched IT system

I find these numbers staggering, but this story over at details how the MoD has written off a project which has so far cost £130 million! They will be keeping the hardware they already bought for £12.2 million, resulting in a write off value of approximately £118 million.

The Defence Logistics Organisation (DLO) – the MoD’s internal buying arm – canned a single common inventory project called Defence Stores Management Solution (DSMS), which would have enabled more accurate tailoring of stock holdings, after executives found the benefits did not outweigh the costs.

The department estimates £130.5m was incurred on DSMS, although £12.2m of hardware was retained for future use, leaving £118.5m written off without the system ever seeing the light of day.

As a result of this they will be overhauling their project and risk management. Hmmm, yes that may be a good idea!