US outsourcer EDS is in more hot water over yet another expensive UK government computer system cock-up.

This time the National Audit Office is fuming over a $14 billion program to give Britain's armed forces a new computer system supposed to replace the 300 computer systems being operated by the armed forces and Ministry of Defence with a single system.

The programme is 18 months behind schedule and $360 million over budget and the outsourcer needed a kick up the arse to get the program back on track, the Audit Office said.

When the project was complete more than 150,000 computer terminals were supposed to be installed at more than 2,000 locations, including Royal Navy warships. Stage one of the plan was supposed to have 62,800 terminals running by July 2007 but EDS only managed to get 29,000 working.

To be fair to EDS some of the delays have been caused by problems with asbestos and regular power supplies in some of the military sites where they are being fitted. However EDS's name has been identified with most of the really expensive government contract cock-ups for the last decade.

More here.