The committee said the Home Office failed to properly monitor the contract or have adequate contingency plans.
The committee was "disturbed'' by the apparent lack of an agreed approach between Siemens and sub-contractor Perot Systems over the mix of off-the-shelf and bespoke software during the pre-contract and IT development phases of the project.
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It revealed that Siemens has not received any milestone payments and 70% of its expected return on the contract will not be paid until productivity improvements are delivered. The company has agreed to mitigate additional expenditure by the Home Office.