The new official data system -- Vitja -- was due to be taken into use at the beginning of the year, but last August Tieto informed police officials that the company would not be able to deliver the upgraded system on time.
“During corrective measures undertaken last autumn and winter we were unable to find a delivery model that would allow us to provide a final solution acceptable for the police,” explained police inspector Mika Pasanen.
According to Tieto however, the schedule problems were due to new factors that arose during the course of the project.
“As the project progressed changes to the functionality definitions arose and they were rather significant. This in turn required considerable modifications,” said Tieto consultant and integration services chief Satu Kiiskinen.
Kiiskinen added that breaking the contract was also the best option for Tieto.
Tieto had managed to deliver about one-third of the project including a registry of distinguishing marks, which police have already begun to use.
The nullified agreement will hurt Tieto – the company will have to fork a one-time penalty of 7.5 million euros to the police. According to Pasanen police have so far paid Tieto six million euros for work completed.
“The project has been loss-making for Tieto and because of that we decided to cut our losses now,” Kiiskinen remarked.
Both Tieto and police stress that the decision to void the contract was unanimous and based on a common understanding.
The Police Administration said that the nullified contract won’t have any impact on police operations and national security because the project is not integrated into systems currently in use.
In addition to police the upgraded data system will be used by border guards, customs, emergency services and the defence forces.