Part 2 A national standard IT system has been under development for over ten years
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ICL and the Department entered into further renegotiations of the contract in October 2001 but could not reach agreement
ICL and the Department entered into further renegotiations of the contract in October 2001 but could not reach agreement
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ICL could not deliver the core application to the pilot site on schedule
By failing to meet the contractual delivery date of July 2001 for the first site, ICL was in technical breach of the contract
ICL requested a renegotiation to address its shortfall in revenue and increase in costs
The Department chose to negotiate
A legally binding Memorandum of Understanding set out the scope for negotiations but this placed extra risks on the Department
The Department could not reach agreement with ICL for ICL to continue with the whole contract
ICL had performed poorly on the contract and tried to recover the situation.