Mammoth U.N. Tech Overhaul: Over Budget and Behind Schedule - United Nations - FOXNews.com

Mammoth U.N. Tech Overhaul: Over Budget and Behind Schedule - United Nations - FOXNews.com: "A $286.6 million computer and software system upgrade, described as the 'cornerstone of a United Nations-wide effort to bring groundbreaking reform' to the management of the U.N. Secretariat, is already about three to four months behind schedule, and is headed to be tens of millions of dollars over budget, less than a year and a half after being approved."

"Yet despite the unappetizing revelations about the cost and timing of the technology project-named Umoja, or "unity" in Swahili — the bureaucrats in charge of the scheme remain relentlessly upbeat about the final outcome."

'The bureaucrats claim that by the time their project is concluded in 2012 it will be back on schedule, and will pay for itself in cost efficiencies and other savings in just two years' time after it is operable and "stabilized." Their report offers little evidence beyond sweeping generalities, however, of how those efficiencies will be achieved.

And by then, the report says, the technology upgrade will have cost a staggering $337 million, or about $50.4 million more than was planned when the scheme was approved about a year and a half ago.

Even that cost-overrun is considerably understated. The original $286.6 million price tag for the Umoja information technology project, known as an enterprise resource system, or ERP, included $37.2 million worth of funding over and above the expected cost, or roughly 15 percent, for "contingencies" In effect, the report projects that the worst-case over-run will be exceeded by 135 percent.'

'Elsewhere, the report says many of the existing electronic systems are only used to back up hand-entered paper systems, which employees trust more than their electronic tools. "Paper documents are usually the source of trusted information," the report confides, adding that at the U.N. "we often have several versions of 'the truth.'" '

'Among other things, the report claims that Umoja's automated processes would "drastically reduce the 207-day average time between the creation of a requisition for goods and the creation of a purchase order" in the Secretariat's procurement system — a claim that seems unarguable. '

'Some projected savings, however, appear bizarre. One example: "Umoja would also generate opportunities for the United Nations to generate income with ... sales of publications, postage stamps and gift items." Expected revenue: $11 million to $21 million. No explanation is provided of how that would happen. The U.N. postal system has been a scandal-tainted perennial money loser.'

'The original plan for the project called for 44 "core" or full-time staffers to manage the Umjoa installation and roll-out. The new draft report bluntly declared the project "could not possibly be executed" without 36 additional bodies. Cost: $32.4 million. Another $18.1 million would be required to replace staff brought in from other parts of the U.N. to help out along the way.

Even though the staffing climbs to 80, the revised Umoja budget includes office rental for 236 people ($6.7 million) with "minor alterations" to the office space ($4.2 million).

The original budget for the tech overhaul had a minimal expense line for travel. That's changed: now the budget calls for "a total of 1,285 trips by the ERP team, subject-matter-experts and corporate consultants," at an average air ticket cost of $6,000, plus $202 "terminal expenses," plus $5,000 for per diem expenses, "with each trip is [sic] estimated to cost $11,202/person."'

This would be hilarious if were just a comical movie. Only a government organization could get away with being that incompetent without being shut down!