E-passport tender raises concern over future software costs, licence fees and taxpayer risk under the proposed Thales DIS Finland/JIT deal.
E-passport tender concerns are growing as questions emerge over whether the government is exposing taxpayers to expensive long-term technology costs.
The Ministry of Public Security is preparing to award a major tender for 3.15 million e-passports to Thales DIS Finland Oy/Just in Time, known as JIT, according to the Sunday Times.
However, concerns have now arisen that the proposed transaction could turn into an expensive “trap” for the government.
According to the report, under the agreement, the company will install and maintain the required information technology infrastructure for the e-passport system at its own expense.
After that, the government will pay €1.04, approximately Rs. 302.23, for every passport printed.
The deal also includes a minimum monthly payment based on 60,000 passports.
After five years, or after the production of 3.15 million passports, the hardware is expected to be handed over to the Department of Immigration and Emigration.
However, officials have warned that the machines cannot function without the proprietary software controlled by the relevant company.
The report points out that the Department failed to set limits for future software licence and maintenance costs during the bidding process.
This means the company could later charge high prices for software renewals.
The government will also have to pay licence fees for systems such as Oracle Corporation, Microsoft Windows software, and anti-virus services.
The Sunday Times further reported that experts are urging authorities to carefully review the tender to prevent unexpected long-term costs from falling on taxpayers.
