Report highlights Northrop Grumman’s lack of experience
Ashley Colvin, a JLARC analyst, said there was “no roadmap” for what Virginia was attempting to undertake with Northrop Grumman.
Published: October 13, 2009
Updated: October 13, 2009
The General Assembly’s investigative arm is rolling out its latest snapshot of the state’s disputed computer contract with Northrop Grumman today, and it’s not a pretty picture.
The Joint Legislative Audit and Review Commission report shows that the giant info-tech program has been blocked by delays, rising costs and political turmoil.
Among the points emerging today: That Northrop Grumman lacked the experience to undertake a project of Virginia’s scale. Virginia is apparently the first state to move toward a privately managed information technology system.
Ashley Colvin, a JLARC analyst, said that the state gave “low priority” to Northrop Grumman’s lack of experience in the management of state computer and communication systems of this scale. Because no other state had attempted such an enterprise, there was “no roadmap” for Virginia, he said.
Colvin also noted that the state’s former computer chief and Virginia’s comptroller said in advance of the 10-year, $2.3 billion contract with Northrop Grumman that the contractor offered Virginia “better value” but “more risk.“
Northrop Grumman, a California-based defense giant, operates government computer networks for, among others, San Diego County and Indianapolis and surrounding Marion County.
Last week, the Richmond Times-Dispatch obtained an advance copy of the JLARC study and reported that it might be too expensive for the state to sever its relationship with Northrop Grumman. Depending on the circumstances, junking the contract could cost cash-strapped Virginia nearly $400 million plus the undetermined price of fashioning an alternative system.
The JLARC report has been a magnet for lobbyists, particularly those representing corporations that want to take over public functions including the possible privatization of the port of Hampton Roads.
The legislative hearing room in which JLARC is meeting is filled to capacity, and at least 15 lobbyists, publicists and executives for Northrop Grumman are there.
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Reader Reactions
As one on the inside, I can tell you that JLARC is just starting to scratch the surface. As one previously said, this is Mark Warner’s Waterloo, but dont expect to hear it in the fawning press. He has a D after his name so can do no wrong.
If you want some accounting for your taxes, dont vote for the Warner/Kaine clone.
The Times Dispatch has been reporting on this fiasco for many months. For anyone who has been reading these articles, it should be quite apparent that our state government leaders screwed up royally. In the beginning, if there were only two companies willing to take on this project (IBM and NG); that should have been a clue the project should not have been attempted. NG must have gotten the contract because they lobbied more aggressively. Whether or not there was any corruption of our governor’s office is speculative, but should be investigated. NG claims they are losing money and wants Virginia to pay even more; no way should this happen. Our next governor needs to find a way out of this financial muss asap.
The final choice was between IBM and NG. NG got it over an experienced company because of one simple reason, MONEY. NG dumped truck loads of money on Mark Warner and Timmyboy Kaine. NG bought this two so they could have unlimited access to our tax money. Just another example of the best politicians money can buy.
So tell me, where did all of the Dell computers go that NG replaced with the HP pieces of junk? Does NG own the Dell and other equipment they took from us?
Hmm. They transitioned about 1000 state IT personnel to VITA/NG. What’s that? About 10 Mil for each employee they Borg’d. That’s not counting they took ownership of all computer inventory from the agencies, but the agencies still pay hardware/software support costs plus a 5% surcharge that goes to VITA/NG.
Pretty good deal Huh?
The report notes “Among the points emerging today: That Northrop Grumman lacked the experience to undertake a project of Virginia’s scale. Virginia is apparently the first state to move toward a privately managed information technology system.“
No prudent business executive or legal counsel would give approval to such a one-sided contract in these circumstances, especially when the contract provides Northrop-Grumman nearly complete control and total ownership over the crucial facilities, infrasturcture, and equipment on which the Commonwealth’s business is conducted and public records kept.
Yet, Mark Warner, whose administration very foolishly approved and signed this contract, proudly acclaims in his TV commercial supporting Creigh Deeds that the Commonwealth needs a Governor Deeds to continue what Warner started. Creigh Deeds is very foolish for allowing himself to be tied to Warner who has effectively destroyed the ability of the Commonwealth to control its critical IT systems as well as wasted hundreds of thousands of taxpayer dollars. That Creigh Deeds has not objected to this connection is not encouraging.
EDIT: I meant Shouldn’t try (at the end).
See my post below..
This thing failed because of a lack of leadership from the Commonwealth. The ‘Plan’ was supposed to be created and overseen by our wonderful state administrators.
With no leadership, Grumman just did what they thought would be good. And it wasn’t.
If our government cannot administer a contract (albeit a large one like this), then they should try. DUH!
this contract is one of the major reasons why Va has the rep as the best state to do business for corporations…..you contribute dollars to the appropriate folks and you get the deal. What the RTD needs to do is dig into who got what from whom…..either direct contributions from NG or indirect through lobbyists, etc.
They keep saying that to privatize will save money, yea sure, I wonder how much money the state is saving now? This will be one thing that Kaine will be remembered for along with lots of other state saving deals.
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