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California Cancels $208 Million IT Overhaul Halfway Through

g01d4 writes "According to the LA Times, 'California's computer problems, which have already cost taxpayers hundreds of millions of dollars, have mounted as state officials cut short work on a $208-million DMV technology overhaul that is only half done. The state has spent $135 million total on the overhaul so far. The state's contractor, HP Enterprise Services, has received nearly $50 million of the money spent on the project. Botello said the company will not receive the remaining $26 million in its contract. ... Last week, the controller's office fired the contractor responsible for a $371-million upgrade to the state's payroll system, citing a trial run filled with mishaps. More than $254 million has already been spent.' It's hard not to feel like the Tokyo man in the street watching the latest round of Godzilla the state vs. Rodan the big contractor."

6 of 185 comments (clear)

  1. Re:Sadly by MrEricSir · · Score: 4, Informative

    In fact, this very scenario has happened a decade before, albet with Oracle instead of HP.

    --
    There's no -1 for "I don't get it."
  2. Sounds familiar but on a smaller scale... by Cornwallis · · Score: 5, Informative

    HP screwed over Vermont: http://governor.vermont.gov/newsroom-Vermont-HP-reach-DMV-settlement-gov-shumlin in its attempt to redo the VT DMV.

    Of course, we end up paying for the incompetence that drives the grossly misnamed Department of Information and Innovation...

  3. Irony by rgbscan · · Score: 4, Informative

    This is by far the best line of the article....

    "Hewlett-Packard is now run by Meg Whitman, who during her failed campaign for governor in 2010 promised to save California money with better computer technology."

  4. Re:Sadly by betterunixthanunix · · Score: 5, Informative

    how important it was to stay out of the fucking 1980's with IT equipment that serves critical functions

    Talk about blanket statements. I suspect that there is quite a bit of 1980s IT equipment in your life that you are not even aware of.

    The problem is not what decade the equipment comes from, it is whether or not the equipment meets its requirements. If equipment from the 1980s is continuing to meet the requirements that governments face today, then there is no reason to spend enormous amounts of tax money to replace that equipment unless doing so will pay for itself before the next upgrade. Unfortunately, there are few cases where such upgrades actually do pay for themselves, so in terms of what is best to do with tax dollars, upgrading old equipment that continues to function as needed is questionable.

    Now, if the equipment is not working, then it is time to replace it. The real problem is that government contracts are not typically given to companies deemed best for the job, and so these situations arise. Contracts are awarded to companies that bid low and to companies that are well-connected, even when better companies are available.

    --
    Palm trees and 8
  5. Paper. Lots of Paper. by Rande · · Score: 5, Informative

    Having worked on govt projects before, it's all spent on :
    a) Management. Lots of it. About 5 times as many managers/sub-contract managers/advisors etc than there will be coders. Because the more management a project has, the harder it is to blame any one person.
    b) Paper. Lots of paper. The amount of pages generated on specifications, revisions, reports, recommendations will be able 10 times the number of _lines_ of code created. All to show that no taxpayers money was wasted.
    c) Tendering. It costs a lot to tender a bid, which reduces the competition to only the big ones who can afford to throw a million at a 1in5 chance. Whereas, if they were allowed to go to a small consultancy who only has 30 employees, they'd be able to get a much better price.
    d) Changes. The requirements are often so written in very complex language that noone really understands it, and then they come along with changes every 2 months which require 3 months of recoding because they didn't fully understand what they were asking for to start with.
    e) User acceptance. Don't underestimate the ability of a low level govt employee to refuse to use the new system because 'I've done it this way for 30 years and it worked just fine! This doesn't work like the old one did.'

  6. Re:Why $208 million? by Solandri · · Score: 4, Informative

    There isn't a DMV per municipality. There are about a hundred and sixty scattered around the state.

    This has been a complaint too. For a state with a population of 38 million is (figure half of them drive) it's about 119,000 per DMV office. At 250 working days a year, that's 475 per office per day, or about 59 people per hour. That shouldn't be that hard, but the lines there are typically 1-3 hours long. They have a reservation system where you can make an appointment in advance. But the last time my registration came up for renewal, there was a problem which required me to visit the DMV instead of renew by mail. I tried to use their reservation system, only to discover that even though I was trying to make an appointment the day after I got the mailed notice, all the nearby DMV offices were booked solid until 3 weeks after the renewal deadline. I ended up making a reservation at some DMV office in the desert 70 miles away (still had to wait in line 45 min), and used the trip as an excuse to do some sightseeing and visit some friends in the area.

    If you have a AAA membership, that's by far the best way to get your DMV stuff done in California (if it's a service they can do - they don't do driving tests and a few other things). I've never had to wait more than 30 min there, and usually they get to me within 5 minutes. They charge a few dollars more, but it's worth it compared to wasting several hours at the DMV.

    In contrast, the RMV in Massachusetts and the DMV in Washington had wait times very similar to the AAA. Massachusetts even puts offices in the mall so parking is convenient and you can drop by while getting other shopping done. So I dunno what California is doing wrong, but whatever it is they're doing it very, very wrong.