Myki operator NTT Data raises concerns about the tender process

There are calls for a review into the tender process of Victoria’s new $1.7bn Myki contract, with a second company crying foul.

A second company has cried foul over the tender process of Victoria’s new $1.7bn Myki contract, prompting calls for a review after it made the serious claim it was asked to make its bid more expensive.

NTT Data, which currently runs Myki, last month lost the contract for Victoria’s public transport ticketing system in favour of US-based Conduent.

In a letter seen by the Herald Sun, NTT voiced concerns it had been directed to ­increase its bid price with no “reasonable explanation” and called for a review.

“It appeared as if maintaining the best commercial outcome and value for money was not a primary concern,” the company wrote.

NTT Data, which currently runs Myki, claims it was asked to make its bid more expensive.

Two losing bidders, NTT and Cubic, have now both raised concerns about the process and called foul.

The Department of Transport and Planning has knocked back calls for a probe, suggesting if they have genuine complaints to take them to integrity advisers.

Public Transport Minister Ben Carroll has talked up Conduent as the new long-term ­operator, with promises to ­upgrade the system to accept mobile ticketing and payments by bank cards.

The opposition seized on the revelations in question time, with public transport spokesman Richard Riordan grilling Mr Carroll.

“Minister, there are now two global bidders with a proven track record of delivering ­accusing this government of a dodgy tender process,” he said.

Two losing bidders, NTT and Cubic, have both raised concerns about the process and called foul. Picture: Jake Nowakowski

“Why is the government forcing Victorian taxpayers to pay more when there are two companies that could deliver this project cheaper and quicker?”

But Mr Carroll defended the contract, telling parliament it had been checked.

“Not only has the probity ­adviser assured us about the request-for-proposal process but about the expression-of-interest process as well, so we have every confidence in our selection of Conduent,” he said.

Mr Riordan also alleged insider trading by pointing to the fact that two senior Conduent executives bought $US100,000 in shares on May 5, 10 days before Victoria announced the company as successful bidder.

The company’s chief executive and chief financial officer bought the shares at $2.91 and $2.99 respectively.

They are now sitting at about $3.36.

Mr Riordan asked Mr Carroll if he or his department had met with the company on May 1 before the contract was announced.

“Minister, how can Victorians have confidence that this huge contract is a good deal for Victorians when such a blatant act of insider trading has occurred?” he said in parliament.

Mr Carroll said the independent probity adviser had “confirmed the process” and that all rules had been followed.

In a statement, Conduent said it was told about the contract on May 15, 10 days after the share purchases.

A government spokesman said Conduent was the “standout candidate” because of its technology, local content and value for money.

“The procurement process for the new ticketing contract was rigorous, undertaken by experts and signed off by a probity auditor,” he said.

“We look forward to working with Conduent to deliver a seamless ticketing system that works across Victoria’s transport network.”