Amazing how often big IT projects mess up like this. When i was doing my software engineering degree in the early 90s we did a unit on managing big IT projects, how (often) they mess up and how problems can be avoided.
See little has changed there.
I am always disappointed but not surprised when I see this.
I ran a £37.5 million public sector IT procurement in 2012 which completed on time and on budget.
It's simple in concept - ask for what you want, evaluate the responses and select the best one.
The problem seems to be that often the people who write the tender don't know what they want (and there is a variant process to help with this if this is the case, but it's either not used or abused), or they're incapable of stating it formally. Then the requirements get changed anyway, or the requirements that the people responsible for writing the tender were given were wrong in the first place. Then "senior management" interferes. Then the delivery and acceptance processes are not properly defined and the private sector makes sure that any changes post-contract cost a lot of money. The implementation and acceptance processes are mis-managed. Finally, nobody learns from their mistakes and does it all again a few years later.
I was lucky, I admit. I had help to fend off senior management interference, who reluctantly stopped it and let me get on with it. I delivered and, yes, it wasn't a perfect solution because by the time of delivery some of the requirements had indeed changed, but my organisation was wise enough to live with that. We had to spend the money by the end of March (financial year) which meant we didn't have any formal acceptance tests because there was no time for them. But it was the right thing to do under the circumstances and I'll defend what I did because of the cards I was dealt. We didn't waste taxpayers' money.
But in general public sector procurements of things like Oracle, senior people think they know better and interfere with the process although they don't want to sully themselves with knowledge and details, and invariably lead to big mistakes. They get promoted, move on, go somewhere else and do it all over again.