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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."

12 of 280 comments (clear)

  1. It's honestly slightly astonishing... by fuzzyfuzzyfungus · · Score: 5, Funny

    This library has a 3945.

    Somebody at Cisco must have made quite a bonus...

    1. Re:It's honestly slightly astonishing... by Anonymous Coward · · Score: 5, Insightful

      When I worked public sector, the first priorities weren't getting the best price or best value. They were, in order:

      1) Buy it from a registered state contractor (most of which had ridiculously jacked-up prices)

      [or, if a state contractor didn't have it]:

      2) Find a state contractor and get a "quote" on it (translation: Have a registered state contractor buy it for you and then attach a hefty fee on top of what they paid, rather than buy it directly and save money)

    2. Re:It's honestly slightly astonishing... by nedlohs · · Score: 5, Insightful

      You missed the looping which is important, what happens is:

      Person 1) Here's $3 million to go do X
      Person 2) OK, I shall do it
      [ time passes ]
      Person 2) Ive finished, and I only spent $1 million, so here's $2 million back.
      [ time passes]
      Person 1) Here's $1 million to do do Y

      Or:

      Person 1) Here's $3 million to go do X
      Person 2) OK, I shall do it
      [ time passes ]
      Person 2) We've run out of money but we are almost done.
      Person 3) OK, here's another $1 million.
      [ time passes]
      Person 2) Ive finished.
      [ time passes]
      Person 1) Here's $4 million to do do Y

      If you've worked in anywhere that sells to large businesses/government you will have seen the end of budget rush as departments rush orders to get billed before the end of the budget year so they can spend their allocated budget before they have to give anything left back and get less next round. It's always our busiest time of year.

  2. Re:Cisco Sucks BUT... by Luckyo · · Score: 5, Insightful

    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.

  3. Re:Newspeak by Luckyo · · Score: 5, Insightful

    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.

  4. Re:Cisco Sucks BUT... by LurkerXXX · · Score: 5, Insightful

    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.

  5. Been there, done that by Virtucon · · Score: 5, Informative

    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"
  6. Re:Do we need to rehash old stories? by Anonymous Coward · · Score: 5, Informative

    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.

  7. Re:COUNTDOWN TO ZERO !! by CodeheadUK · · Score: 5, Funny

    Possibly a British-ism. Tit is a common slang word for a breast LIke boob, jubblie, nork, funbag, chesticle or Bulgarian Airbag.

  8. Re:Newspeak by penix1 · · Score: 5, Interesting

    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.
  9. Re:COUNTDOWN TO ZERO !! by Tokolosh · · Score: 5, Insightful

    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
  10. Re:Actually, it is quite simple... by msauve · · Score: 5, Informative

    " 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