Virginia's interim computer boss is ruling out -- for now -- layoffs to help a giant corporation control what it's spending to modernize state information technology services.
Leonard M. "Len" Pomata, temporary head of the Virginia Information Technologies Agency, is knocking down a proposal by Northrop Grumman to stem losses by, among other things, cutting staff.
"There's no need to change anything we're doing at VITA," said Pomata, who took over after the firing last month of Lemuel C. "Lem" Stewart Jr., a critic of lengthy delays by Northrop Grumman.
In an e-mail Tuesday to VITA employees and an interview yesterday, Pomata said layoffs are possible in the future. Gov. Timothy M. Kaine's continuing effort at budget-balancing relies, in part, on cutting thousands of jobs.
The controversy engulfing the turnover of the state's IT network to a politically muscular company is emerging as another setback for Kaine in the run-up to the election to choose his successor.
On his monthly phone-in show yesterday on Richmond radio station WRVA, Kaine said of the problems besetting VITA and Northrop Grumman, "There is blame on all sides."
VITA staff numbers about 340, but some employees, while paid by the state, are supervised by Northrop Grumman. The company is four years into a 10-year, $2.3 billion contract to update and manage the state's computer systems.
In April, Northrop Grumman Vice President David Rosener outlined for state officials possible economies to help the company recover expenses above those for which it is paid upward of $14 million a month, under Virginia's richest-ever privatization pact.
Northrop Grumman, projecting annual overages of more than $25 million, envisions cost controls as a way for the state and company to "show skin in the game," according to Rosener's presentation.
But VITA's top management, including Stewart and contract director Fred Duball, have taken an increasingly hard line with Northrop Grumman, urging the state to withhold full payments to the company as a penalty for delays.
Also, the state's contract with Northrop Grumman caps total payments to the firm at $236 million per year.
However, as acting chief information officer since last month, Pomata has argued for -- and authorized -- near-total monthly payments to Northrop Grumman.
He said yesterday that the company would receive about $13 million for July, with about $1.7 million withheld for failing to complete on time a procedures manual and instructional material on handling trouble calls from agencies, repairs and diagnosing problems.
Northrop Grumman spokesman Christy Whitman did not respond to a request for comment.
Acknowledging Northrop Grumman's continuing losses on the Virginia contract, Pomata said: "They are spending more on services than they're receiving from the commonwealth."
An option for recovering these dollars may not be available to the company for more than five years, when the state and Northrop Grumman could renew their agreement for three more years, but without the limit on costs to taxpayers.
Setting right Virginia's info-tech program will fall to VITA's next permanent director. Kaine said yesterday that a new chief will be selected "probably within the next couple of weeks."
At least five finalists are said to be under consideration.
Contact Jeff E. Schapiro at (804) 649-6814 or jschapiro@timesdispatch.com.
Politics editor Andrew Cain contributed to this report.
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