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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."

8 of 185 comments (clear)

  1. Fallacy of Sunk Costs by Galaga88 · · Score: 5, Insightful

    I'm glad to see that they didn't fall prey too badly to the fallacy of sunk costs. Too many places wouldn't realize they've already lost the money they threw at the project, and no amount of extra spending in the hopes that it will eventually succeed will get that back.

  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. Re:Typical of the Federal Government too by tibit · · Score: 5, Insightful

    It's not about the government. It's all about the useless IT consulting companies. Pretty much every single flashy consulting company billboard/AD that you see at an airport is just a way to milk the gullible and not deliver. This is an across-the-board problem. Nobody wants to fucking do their jobs. The government thinks they don't need the right people to do it, so they hire a contractor. The contractor doesn't want to do the job either, it's not their core competency (nobody knows what it is anyway), so they hire subcontractors. Subcontractors have very little vested interest in anything, and they maybe deliver, maybe not, but due to multiple layers of clueless management, it's of no use anyway. So there you go.

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    A successful API design takes a mixture of software design and pedagogy.
  4. Re:Typical of the Federal Government too by MightyYar · · Score: 5, Insightful

    I thought it was an "emoticon" of a large breasted woman giving the finger.

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    W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
  5. 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.

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    Palm trees and 8
  6. 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.'

  7. Re:Typical of the Federal Government too by Virtucon · · Score: 5, Insightful

    Oh good grief what a bunch of bunk. Do you know why big contracting companies exist? It's because companies have lost faith in their internal organizations to deliver. Plain and simple. I've seen it in dozens of organizations in my career where an entrenched group builds a castle of "can't." So, the execs hire an outside firm not only to get what they want but to also force these little castles to actually deliver something. Lazy contractors? Please, how about lazy employees who feel that they hold the keys and as long as they keep pushing back and feel empowered so nobody is going to mess with their careers even though they may be doing such innovative things like writing System 360 Assembly Language. It's everywhere and it's not just in IT, people in this country have become lazy and foolish relying on attitude rather than customer service and trying to do a good job.
    Every large organization has this problem and IT isn't just one of the areas where dead space can occur. So, the big companies come in, push change, make big promises that sometimes are overblown. In the case of California I could probably guess that the specifications of what were required were done by bureaucrats who have no clue on how to spec out requirements or were based on something that wasn't possible to build. Are there bad firms? yes, but are there bad customers? hell yes and they can make it absolutely impossible to deliver anything because the same people who have to approve or test anything are usually overworked, or not committed to the project leaving the contractor and subsequently the whole project in limbo. That usually leaves to failure despite the best efforts of all parties involved.

    So before you blame consulting companies for this failure, remember they wouldn't exist if people were doing their job or came to the realization that their skills and abilities are out of alignment with what their management expects.

    --
    Harrison's Postulate - "For every action there is an equal and opposite criticism"
  8. Re:Typical of the Federal Government too by Lije+Baley · · Score: 5, Insightful

    There are some cases also where this misalignment of skills and management expectations is more of a management deficiency. Many organizations have technical people who are quite willing and capable, but they have been pigeon-holed and beaten down by policies which incentivize apathy. I have worked with long-time developers in quasi-government jobs who have skills only on legacy systems, and I have had the pleasure of helping them participate in the development of modern SOA interfaces. Most of these people just need an opportunity to learn, grow, and feel like their contributions will be meaningful. And it is not expensive, in fact if it looks expensive you are doing it wrong! You don't need or want conventional "training" for them, and if it is done right, it can cost little or nothing in extra time. These people have a goldmine of lost productivity to tap into -- productivity that poor management has beaten out of them and that good management can cash in on.

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    Strange things are afoot at the Circle-K.