Comment Working with Governments... (Score 1) 162
I'm not really taking Oracle's side on this but having worked on a lot of Government (Local, State, Federal) projects over the years I have seen this sort of thing happen time and time again.
The first problem you encounter is that, almost without exception, government projects are fixed bid rather than time and materials. The procurement system requires them to do it that way. Fixed bid projects can be successful - but only if you tightly control scope and expectations. And in my experience, scope creep is a way of life on government projects.
The second problem is that when scope creep occurs the project manager, being a political position in large part, will invariably agree to the scope creep to "keep the customer happy". That puts pressure on the rest of the team to deliver more in the same amount of time. Often, quality suffers in the name of getting it done on time.
Problem number three - the customer sometimes doesn't know what they want. Or worse, they think they know and ignore the advise of their consulting partner. Or worse yet, the customer listens to the consulting partner and the partner is giving bad advice. If any of these things happens your project is in deep, deep trouble.
Problem four - salespeople will make unrealistic promises (i.e. they will lie through their teeth) to win the contract. In most places, salespeople are paid their commission based on a percentage of the revenue in the contact. Not what it actually costs to implement the product or service. So by the time the shit hits the fan the salesperson has collected their commission and moved on to the next deal. The project team is left to clean up the mess. If the project goes over budget, or gets cancelled, it has no real impact on the salesperson. They get paid either way. In short, the problem is that the commission is tied to revenue rather than profitability.
Now I've worked with Oracle before. Some of them are very good, some of them are very bad. I suspect that by the time this whole thing is investigated there will enough blame for all sides. Sure, Oracle has screwed up projects before but I'd be very surprised if all the blame lies at their feet on this one.