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California Cancels $208 Million IT Overhaul Halfway Through

Posted by Soulskill on from the money-well-spent dept.

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."

2 of 185 comments (clear)

  1. Would like to see this happen more by fermion · · Score: 4, Interesting
    If contractors knew that they projects would be cancelled, and maybe even be sued for breech of contract, we may not be wasting money like we are. In my state I see roads being built, software being delivered, all the time on budget and on time. it may not be the best but it is adequate. But it seems to be ok to spec the project inadequately, provide minimal funding knowing that more can be asked for later, just to con the tax payers into accepting a worthless or expensive project.

    We see this all the time in the military. A low estimate is given on a minimally speced out project. Then as the project money is spent, the agencies go back to the congress and ask for more money, saying we already spent this money, and it won' really work the way we need it to. Instead of firing the con artists, and suing the contractors, and accepting the money as lost, we fund it more thus encouraging the fraudulent behavior.

    --
    "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
  2. Somethings wrong with this by Anonymous Coward · · Score: 4, Interesting

    "The contract was awarded in 2007 to the Texas-based Electronic Data Systems. The company was later bought by Hewlett-Packard and renamed HP Enterprise Services. 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."

    I smell something going on here. I'm thinking this may have been a bit too convenient.