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Tech Mahindra’s $75 Million DMV System Modernization Project Delayed. Audit Cites Understaffing and English Language Issues

As per the audit findings, the project is delayed due to incompetent consulting staff, contractors’ problems with the English language, A-Team members not deployed, and sub-contractors were not identified by Tech Mahindra.  The State Division of Internal Audits conducted an audit of the DMV’s System Modernization (SysMod) project contract.

The SysMod project (project) was undertaken by DMV to modernize their aging system.  The audit reveals the DMV System Modernization project has not been progressing as expected due in part to the contractor not providing project team members with the experience and English proficiency levels described in its RFP response.  DMV estimates the project is six months behind schedule.

DMV contracted with Indian firm Tech Mahindra to develop and implement the project. The contract was executed in April 2016 for a duration of five years at a total cost of $75 million. The contract was amended in February 2017, which extended the termination date for an additional year for maintenance coverage. It also increased the maximum amount of the contract by $3 million, primarily for additional hardware and software.  The other two failed bidders were Dell Computers and an Indian firm Infosys.

DMV represents the contractor has not provided a cohesive project delivery team with the level of expertise proposed in its RFP response.  In the RFP response, Tech Mahindra represented they would provide their “A-Team” to work on the project, which consists of personnel with years of experience in the public sector, other state DMVs, Oracle database, IT security, and infrastructure domains.

The RFP response contained a list of team members and their experience, which the contractor stated demonstrated their commitment to the State of Nevada. The contractor stated the team members were ready to be engaged on the project if awarded the contract. In the contract negotiated items, the contractor also stated they would reallocate key personnel working on the New Hampshire DMV Modernization project to the Nevada SysMod project. The contractor also represented they would keep their A-Team on the SysMod project.  Eight of the 13 subcontractors used on the project were not identified by the contractor.

As of April 2017, one year into the project, the contractor has only provided six of the 25 A-Team members they proposed. Of these six members, three did not start until after April 2017, a fourth was removed after two months, a fifth was removed and returned to the project several times, and a sixth assumed multiple responsibilities.

In the RFP response, the contractor, Tech Mahindra, represented all project personnel will be proficient in communicating, speaking, and reading English. DMV had to edit project documentation and meeting minutes provided by the contractor for grammar and spelling because they were not written in a clear manner and were not useable.

On the other hand, DMV failed to provide proper execution of the project.  The audit found DMV did not use the protocol for the deliverable submission and review process.  DMV did not initially use the resolution procedure for issues arising during the project.

DMV did not enforce other requirements in the contract. These requirements include: identifying subcontractors and using the state resume form for contractor and subcontractor personnel.  Eight of the 13 subcontractors used on the project were not identified by the contractor. Consequently, the DMV did not have the opportunity to ensure the subcontractors were suitable to conduct business in Nevada.  The audit also found that the State resume form was not used with forty-four out of 51 personnel working on the project provided resumes without using the state resume form.

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