NYC Mayor Demands $600M Refund On Software Project

Posted by timothy on Thursday June 30, 2011 @08:49AM from the so-he's-against-economic-stimulus dept.

alphadogg writes "New York Mayor Michael Bloomberg is demanding that systems integrator Science Applications International Corporation reimburse more than $600 million it was paid in connection with the troubled CityTime software project, a long-running effort to overhaul the city's payroll system. 'The City relied on the integrity of SAIC as one of the nation's leading technology application companies to execute the CityTime project within a reasonable amount of time and within budget given the system's size and complexity,' Bloomberg wrote in a letter Wednesday to SAIC CEO Walter Havenstein. CityTime was launched in 2003 at a budget of $63 million, but costs swelled dramatically as the project stumbled along for nearly a decade."

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Re:Yeah by drunkle+j · 2011-06-30 08:59 · Score: 5, Insightful

It's about time someone is calling out a company on their massive budget overrun. The SOP of underbidding contracts just to get them, knowing full well that you can just ignore the budget is nothing more than systemic fraud.
Why they decided to pay $600M and then ask for a refund is a bit perplexing.