DTA, Finance asked to check IT vendors' relationship-building with government

A range of ICT and enterprise software vendors could face government scrutiny over how they “cultivate” relationships with agency officials leading large technology projects.

A parliamentary audit committee report [pdf] examining the National Disability Insurance Agency’s PACE CRM project made the finding on Wednesday.

It came after the committee obtained “written evidence” from Salesforce - the vendor contracted for the NDIA project - of “118 instances of hospitality and/or gifts passing to NDIA officials from Salesforce executives over an almost four-year period, both leading up to and after the award of the contract and throughout the period of extensive contract variations of more than $100 million.”

Committee chair Julian Hill said that it “raises further serious questions about how widespread this sort of practice and culture may be in other Commonwealth entities, [both] by Salesforce and other major ICT vendors.”

The committee has asked Salesforce to supply a report on “all hospitality [it] has provided to Commonwealth officials in all entities over the past three years.”

A Salesforce spokesperson said it is "fully cooperating with the committee".

"Salesforce employees are required to comply with its code of conduct and other policies, including those relating to offering gifts or hospitality to customers," the spokesperson said.

"Applicable Salesforce policies were not followed in relation to the gifts and hospitality referred to.

"Salesforce takes any violation of its company policies seriously and is taking appropriate steps to address this matter."

A broader examination involving many more vendors could now be on the cards, with Finance and the Digital Transformation Agency (DTA) asked to lead it.

“The committee recommends that the Department of Finance and the Digital Transformation Agency take appropriate action to understand the extent to which inappropriate cultivation of Commonwealth officials may be occurring as a result of hospitality and gifts by major ICT vendors,” the committee report states.

DTA's digital investment advice and sourcing division general manager Wayne Poels told iTnews that "in response to the recommendations ... the DTA is collaborating with Finance on next steps around the behaviours of vendors and Commonwealth officials procuring external support and services."