Project Ocean, take two

In Philadelphia, Project Ocean is theoretically back on track, and $6.9 million will be Oracle’s cost for its failure. Of course, more than $18 million had already been spent on the mammoth water billing system through September, when the city decided the proposed Oracle software wouldn’t work for them; in fact, it didn’t seem to be working at all.

Back in autumn, Computer World reported that officials from the city of Philadelphia had announced an agreement in principle with software giant Oracle Corporation to restart the Project Ocean water-billing system initiative, reportedly at no extra cost to the city. Oracle was called upon to provide additional off-the-shelf utility billing software.

As reported on this website and others, August saw the halting of the three-year multimillion-dollar “Project Ocean.”

Originally written in 2003, the contract with Oracle had the company replacing Philly’s outdated financial systems within their water department in a CRM software involving Oracle implementing “the most complex and biggest IT system” in the Philadelphia government. The project was supposed to be completed in twelve months for a total price of $7 million. More than three years later, the city still has no updated systems and has spent some $18 million.

The Project Ocean story has featured corruption, resignations of long-standing public officials, and embarrassing headlines spread worldwide. The project had been officially halted in August 2005, with the Mayor’s Office of Information Services seeking to analyze alleged overpayment; by March 2006, city officials proclaimed the investigation finished and Project Ocean was reportedly back on track, but there was dispute as to whether Oracle employees were even doing work on the project at that point.

Outgoing CIO Dianah Neff attempted to put a positive spin on the Project Ocean disaster, while citing high personnel turnover and unforeseen technical complexity among reasons for Project Ocean’s failure. Neff confirmed the $18 million figure, with or without this latest agreement, and stated that a like project would normally cost $32 million.

No word from anyone, though, as to why the low low price of $7 million was ever taken seriously, much less accepted by city officials.

Today, the online IT World Canada quoted Philadelphia CIO Terry Phillis as stating that city government has finally signed an amended contract with Oracle.

Phillis’ new plan features a team of twenty contractors to implement the new software, managers from three city agencies created specifically to oversee Project Ocean II, and Phillis himself will “directly oversee the integration of the new billing software in an effort to better control costs.” In a great, realistic quote, Phillis said that "My head’s going to be on the block anyway, so I’d rather have control of my own destiny than have it in the hands of a third party.”

In lieu of the planned Oracle software, Phillis and Philly are implementing Basis2, a software package developed by Adelaide, Australia-based Oracle business partner Prophecy International Pty, and that most of Oracle’s software “will be thrown out.” The project with Prophecy began on December 11.

Back in September, City Solicitor Romulo Diaz Jr. promised that “We’ll have the functionality that the city requires and be able to meet budget requirements and have the billing system up and running sometime in the fall of 2007.” This target is indeed a key date, as it marks the end of sitting mayor John Street’s government.

In the IT World piece, Phillis “said that the software is already running in test mode and that he expects a proof-of-concept bill for an average customer to be produced within four months or so. He added that the billing system should be up and running by December…”

Interestingly enough, IT World also notes that “Project Ocean is designed to replace a 30-year-old, Cobol-based mainframe application that still relies on punch cards.”

Damn, well, selling this thing to an archaeological museum might earn back a little of that outstanding $18.1 mil, eh?

“Philadelphia flushes Oracle out of water bill project” by Matt Hamblen can be read at IT World Canada.