West Virgnia Auditor Finds Cisco Router Purchase Not Performed Legally
coondoggie writes "West Virginia wasted millions in federal grant money when it purchased 1,164 Cisco routers for $24 million in 2010, a state audit concluded. A report issued this month by the West Virginia Legislative Auditor found the state used a 'legally unauthorized purchasing process' when awarding the router contract, paid for with federal stimulus funds, to Cisco. The auditor also found Cisco 'showed a wanton indifference to the interests of the public' in recommending the investment in its model 3945 branch routers, the majority of which were 'oversized' for the requirements of the state agencies using them, the report (PDF) stated."
This library has a 3945.
Somebody at Cisco must have made quite a bonus...
And even if something did, it's just part of the cost of doing business for both companies attached to the tit of government and those officials getting off on shoveling out other peoples' money.
(-1: Post disagrees with my already-settled worldview) is not a valid mod option.
There's a whole lot of room to go down in specs before you could even consider talking about "insifficiently specced gear".
It's kind of like using that argument when someone needed a shovel and got sold a truck with a plough.
In a decent world, this would get the company blacklisted for all government-funded future purchases for a certain time. Which would make company care a LOT about not fleecing the public.
Looking at the regular wholesale price in Germany (which is most likely higher than in the US), a price of $20k per piece would require e.g. a voice bundle. Plus, with a purchase of that many devices, Cisco would allow for a project price that would save at least another 20-30% on the purchase ... ... 29xx series will in most cases handle any "regular" speed used in WAN environments, even with partial 1G speeds ...
As for the oversized, unless they were setting up every site with full 1G or more, they are oversized by at least one or two models
Apparently you are totally unaware of the state of bridges in this country if you think our infrastructure is fine.
We've got lots of infrastructure that is falling apart. West Virginia just happens to have IT clueless folks running the place spending money where they shouldn't, and the biggest networking IT specialist around recommended something insane.
I can attest that while Cisco makes great products their sales folks and technical sales consultants are very unscrupulous at times. At a company I was working for we were looking for competitive bidding on a new Wifi Infrastructure. We were currently using old Cisco equipment however management wanted to have an open process and do a competitive bid. The Cisco sales staff and their channel support did everything they could to undermine the competitors even though our bake off showed that in terms of some features, the competitors had better features and security. Ultimately when they sensed that they would lose, they used a product roadmap meeting with our CIO as an opportunity to throw my management and my entire team under the bus at our "flawed" thinking.
Hard sell techniques? Yes. Unprofessional? Definitely.
In this case, it sounds like the Cisco sales rep was looking at his bonus, which was probably very very lucrative considering the total sales contract price. Any Network Architect or Engineer worth his salt wouldn't have recommended this overblown hardware based on the requirements. Hopefully West Virginia will use this opportunity to fix the holes in their procurement process so this doesn't happen again because I don't see Cisco ever giving them a refund.
Harrison's Postulate - "For every action there is an equal and opposite criticism"
I'm not surprised, this is Cisco's M.O.
Every quote I've ever gotten from them has been massively inflated by speccing higher end equipment than is necessary. They always give the big pitch for the bigger product - usually to upper mgmt, whether it is overkill or not. Everyone wants to believe they are "the enterprise", so Cisco talks them into enterprise-grade equipment.
Not to say that the state employees shouldn't have questioned the quote. But odds are that the only technically knowledgable people involved were Cisco's people, and they are the pros at fleecing the sheep.
A house divided against itself cannot stand.
The way to win would have been to hire or use a CCDA or CCDP certified consultant. The design associate/professional track is for consulting on Cisco networking device options, feature sets and port density.
Unfortunately, most consultant firms hire with only CCNA certification which means you are knowledgeable enough to be dangerous.
Most equipment has a finite life. Yes we have all see that 15y/o Cisco box in the back room everyone is afraid that if the UPS allowed to power down the fans in the Cisco or its power-supplies would never spin back up. Mostly competent business or state agencies depreciate stuff faster than that and replace it.
You should be able to reasonably estimate the needs of a facility like a library 3-5 years out. Then you build yourself a little head room. Take your most critical estimated capacity requirement multiply by 1.4 and size accordingly. Even that can lead to some over kill; like putting a 2811 where an 1841 might do, but its usually enough prevent any nasty surprises that require replacing equipment before the end of its service life. On balance it works out okay cost wise and may leave you with some residual value in the equipment that you can then resell. No reasonable person would have faulted Cisco for doing what I just described but some of the reports on this clearly show them over specifying by 5 or 10 times and more.
Repeal the 17th Amendment TODAY! Also Please Read http://www.gnu.org/philosophy/right-to-read.html
It's not a rehash, it's an update. If you had bothered to read any of the links you would see that these are the state's official findings on the matter, and it puts Cisco in the position of potentially not being able to bid on state projects in the future.
Possibly a British-ism. Tit is a common slang word for a breast LIke boob, jubblie, nork, funbag, chesticle or Bulgarian Airbag.
Disclaimer: I work in the office where this occurred although NOT a part of this mess...
Having said that, if anyone has ever tried to work with the WV purchasing division you come to realize they practice real hard to rise to a level of incompetency the likes of which would make a pinhead blush. This isn't the first time officials have tried to "get around" them. Joe Manchin himself used a practice called stringing to avoid using them when he was governor. Projects languish over there for years meanwhile the clock is ticking on the funds available. I have had a contract sit there for 18 months with no end in sight.
I am not trying to excuse what was done simply trying to get others to see a broken system in this state. When you make things so difficult to work with of course people try to find a way a way around it. That is human nature. This incident has less to do with any sort of corruption (although some did exist in the Cisco sales rep and his representations) than it had to do with trying to meet the conditions of the grant quickly which was one of the conditions itself. Remember, stimulus funds were supposed to be used for "shovel ready" projects. Few states met that requirement....
This is a sig. This is only a sig. Had this been an actual sig you would have been informed where to tune for more sigs.
Three things will happen:
1. Someone will step forward to say that he predicted this would happen, but nobody would listen to him.
2. Some low-level functionary will have his life ruined.
3. Some high-level functionary will get a lobbying job or be appointed to a government regulation agency.
Prove anything by multiplying Huge Number times Tiny Number
No, the reason that the 3945s were recommended was because the state wanted routers with redundant power supplies, and the 3945 is the lowest model Cisco makes with redundant power...
It looks like the state wrote a RFP the specified cisco kit and specific cisco kit at that. It looks like they wanted a single box for routing, switching, wireless, secure voip with PSTN fallback, waas, and POE. Cisco charges a HUGE premium to put all that into a single box. The VOIP and WAAS are baby servers each and add the switch in you have filled the add in slots. Anyways this is not something to blame on cisco the IT guys picked a winner by what they specked and how they specked it. Having worked with government IT before it's easy to get stuck doing something stupid, case in point agency was looking to upgrade there 80's 56k frame relay bridged network. I came in as a sub, they had specified a cisco 7500 as the core for a upgrade to DS3's and that it be bridged. Well noting that they were an all IPX shop I recommended routing it took longer to get that change put into the contract and I had auditors questioning if I was trying to give them something lesser. They extended the project and had be connect up the locations via preexisting fiber they are paying 130k a month for DS3's to facilities they have dark fiber to. I had to fight to let the dark fiber be the primary routed path as they did not want to loose face with there 7500 DS3 5 year contract boondoggle, in the end they went from 56k frame to gige fiber with a 45mbs DS3 backup network. At the end of the day if you let the gov IT guys spec more than what they want to do they can easily start picking winners as far as manufacturers, in the case of that 7500 I'm very sure he wanted it as a resume point that he worked with them.
No sir I dont like it.
This really doesn't surprise me. Having worked with a State government in the late 1990's I was in charge of a conversion from Token Ring to eithernet for a moderate sized network for an agency. Cisco seemed to assume that we were all dumb as dirt and insisted that no other brand of eithernet switches would work with their routers which we were already using and which we did want to stay with for the one router we needed.. A classic case of FUD. Fortunately, they were high bid on the overall project by a factor of over two! By using the vendor WE wanted (who also had the lowest total cost) for the switches, and keeping the Cisco router, the conversion went off ahead of schedule and way under budget and worked fine for as long as I was there. My experience taught me that they really didn't CARE what was best for the customer, they just wanted the sale.
"Not Performed Legally"? "'legally unauthorized purchasing process"?
So, the opposite of legal... would be illegal.
Also: "Cisco showed a wanton indifference to the interests of the public"
Really, a profit driven company tried to fleece the public? I'm shocked, shocked like a man making toast in the bath!
Cisco did not fleece the public they put in their proposal and the government accepted it, this has all the markings of money burning a hole in the auditors pocket. The auditor had $24 million to spend so they spent it, they don't care if they had a cheaper option, they wanted the best they could get for the money they had, even if they didn't need it. Unfortunately the way government spending works is you are expected to spend every dime they give you. If you don't spend it all then you are punished by getting less or none next time around.
Knowledge = Power
P= W/t
t=Money
Money = Work/Knowledge so the less you know the more you make
performed their legal duty to maximize shareholder value
I'm getting tired of people translating this meme into reasons why a sales rep performed jackassery like the sale in question. Yes, the company owes its shareholders a true and ongoing effort to make their shares valuable. Part of that effort includes making the company valuable by maintaining its market-worthiness through the stewardship of its reputation with its customers. When a sales rep oversells like this, and it comes out in the press, it erodes the value of the company, and is counter to the make-shareholders-happy mandate.
The "corporate America is inherently bad because publicly traded companies must do wrong-headed things because they're required to" attack on businesses is just wrong. Thousands of businesses, every day, increase their near and long term value by being valuable to their customers. Nobody likes to talk about that in ranty internet forums because it takes all the fun out of shouting about The Man etc.
What Cisco did in this case was demonstrably not in the shareholders' interests.
I hate corporate America as much as the next guy
What you hate are the people and incidents that make you hate those people and incidents. In the meantime, millions of people at work in thousands of companies do sensible things every day, and have loyal customers as a result. But that never makes the news because it doesn't provide something to bitch about, and where would Slashdot be without that?
Don't disappoint your bird dog. Go to the range.
" the state wanted routers with redundant power supplies"
Well, that's what Cisco claims, but they can't document it. The best they could do was show that redundant power was included in some spreadsheets which the state reviewed. People within the state deny making redundant power a requirement, although they did discuss it for "24/7/365 locations such as regional jails and DHHR state hospitals."
"National Security is the chief cause of national insecurity." - Celine's First Law
Belkin!
Now the thread disintegrates into a big game of teat for tit...
You have the right to remain sentient. If you give up the right to remain sentient, you will be elected to public office
I likewise call WV home and I've been in IT here for nearly two decades. I've worked directly with Mark Williamson, the Cisco engineer being scapegoated in this mess, many times over the years. I'll say going in that I know I may come off as a Cisco shill. You're welcome to review my post history to see otherwise. I have purchased, implemented, and managed their products at my jobs over the years and I'm fairly agnostic about brand at this point. However, a few things need to be said about this issue and how it is being presented.
This stimulus money was treated as a windfall by Jimmy Gianato and abused like every pork barrel project in WV has been for as long as anyone remembers. Allowing the State to pin the blame on one (genuinely nice) engineer at Cisco is only continuing the abuse of the system by those really guilty here.