State accuses Northrop Grumman of breach
Published: July 1, 2009
Updated: July 1, 2009
LETTER TO NORTHRUP GRUMMAN: Notification of Failure to Complete Transition
The state now is accusing Northrop Grumman of failing to deliver computer services and hinting at unspecified action against the giant company.
In a shift yesterday, the state -- which has been defending its disputed 10-year, $2.3 billion deal with Northrop Grumman -- said the Chantilly-based firm is in breach of contract.
Further, the state is demanding a plan from Northrop Grumman within 60 days for ending delays -- some that have continued two years -- and for completing an inventory of computer equipment that was supposed to be finished yesterday.
That work may not be wrapped up for several months, with full implementation of the contract -- now three years on -- not expected until Christmas.
In a memorandum to two company executives, a senior official of the agency that hired Northrop Grumman signaled the state's new stance in the growing controversy over the shift to privately managed information-technology services.
Fred Duball, a director of the Virginia Information Technologies Agency, wrote that "Northrop Grumman's failure to complete transformation in a timely manner means . . . the commonwealth is deprived of the benefit of those services and may incur other damages to compensate for Northrop Grumman's deficiencies."
Duball left open the possibility of legal action, saying, "By notifying Northrop Grumman of its failure to fulfill its contractual obligations and requesting a corrective plan, the commonwealth is not waiving any contractual rights or remedies available to it, nor is it excusing Northrop Grumman's breach."
Northrop Grumman spokeswoman Christy Whitman, told of the Duball memo, replied in an e-mail, "We are working to address the issues of critical importance to the program's success."
The company, meanwhile, is running a full-page newspaper advertisement defending its work.
Gov. Timothy M. Kaine, for whom the Northrop Grumman contract -- the state's richest-ever privatization pact -- is becoming an election-year embarrassment, said the matter is in the hands of the board that oversees VITA. The panel is made up of gubernatorial and legislative appointees.
"The governor has confidence in their ability to handle it," Kaine spokesman Gordon Hickey said.
The state's latest position on the troubled VITA-Northrop Grumman alliance echoes that of the VITA chief, Lemuel C. "Lem" Stewart Jr., who was fired last month after complaining that Northrop Grumman is not fulfilling its obligations.
This week, the agency's interim head, Secretary of Technology Leonard M. "Len" Pomata, fended off criticism from House and Senate committees that the state had failed to hold Northrop Grumman accountable for not delivering on a number of promises.
Initiated by Kaine's predecessor, fellow Democrat Mark R. Warner, and backed by legislators in both parties, the IT privatization initiative is flowering as an issue in this year's elections for governor and the House of Delegates.
"Frankly, there needs to be a stick," said House Majority Leader H. Morgan Griffith, R-Salem, urging a remedy. "I don't want to pull away the carrot yet. But there definitely needs to be a stick in the process."
He added, "Right now, it's a pig in a poke."
In another reflection of political sensitivities, the General Assembly's investigative arm has been asked to accelerate a scheduled snapshot of the implementation of the Northrop Grumman contract.
Rather than report in December, the Joint Legislative Audit and Review Commission is expected to provide an update in October -- a month before Virginians go to the polls.
The request for an earlier report came in a letter to JLARC's chairman, Del. M. Kirkland Cox, R-Colonial Heights, from House Appropriations Committee Chairman Lacey E. Putney, I-Bedford, and Senate Finance Committee Chairman Charles J. Colgan, D-Prince William.
Contact Olympia Meola at (804) 649-6812 or
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Contact Jeff E. Schapiro at (804) 649-6814 or .
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Reader Reactions
really. REALLY???? you seem to forget that VITA employees who were foisted off on NG were STATE EMPLOYEES.
You are so right but many of them worked in areas that did not require high level security clearances. Some of the NG empoyees who were not State Employees could not pass the requirements but now NG wants them to have free access.
Who should set the access level the contractor or the agency reponsible for the security of the records. Ask the Health Department or any other entity that has been hacked. Then you can see why many agencies require this type of clearance.
VITA/NG came in like they were the only ones that knew anything about the IT environment. They told people how they were going to do their jobs, with what equipment and installed long drawn out procedures to get things accomplished. They also demanded agencies drop all other operations to take care of their needs immediately but did not provide the same service. This contract wastes so much time and money that it will never work. Blaming the state agencies for the delay and putting up roadblocks is saying that they had no idea how to carry out their missions before the contract. In other words NG/VITa still thinks it can do all for everybody and that is the falicy of this contract.
Re: Beenthere Posted on July 03, 2009 at 8:11 am
You know what they say, if we dont like ourselves, no one else will either. Hehehehehe
ref:
“ Posted by ( Broughton55 ) on July 02, 2009 at 7:10 pm
Well-written, Brought…“
Did we forget what account we logged in with or do you often pat yourself on the back ;)
What the public fails to realize and appreciate is that all of their data goes to N/G. The Health Dept has been hacked into stealing thousands of records, what is next? What happens when DMV or the Tax Dept. records are hacked into and all of those Social Security Numbers and dates of birth are sold on the black market? One of many examples: in Ghana journalist tracking these issues bought a N/G hard drive containing sensitive US government data - the data was not even encripted.
Jer1234:
“Many of these so called IT employees can not pass the background checks required by state empoyees to work on sensitive information so NG is now demanding open access so they can spend more state money to gain access to our records.“
really. REALLY???? you seem to forget that VITA employees who were foisted off on NG were STATE EMPLOYEES. And the agency I was originally hired to work for required State Police background checks. I also have had a Secret level clearance to work at the NN Shipyard. I could easily pass the former and obtain the latter again.
It’s one thing to express an opinion, it borders on defamation to accuse all of the NG employees of having criminal histories. I’m not defending this project by any means, but you’re off base on this one.
Broughton55 - as to the employees being interrupted, research MPLS and Storage Area Networks. how’s that working for everyone?
This is not a privacy issue but a process issue. The only access to records needed is when a conversion of data actually takes place from the old hardware Server to a new Server. There should be Templates already in place from the original creation of data on the old system for testing. Testing is needed if you are changing operating system platforms. The process should be invisible to the enduser. I stand corrected but NG should be consolidating the same activities performed on a matrix of old mismatched hardware systems in different locations to a one large data center. I’m sure NG met with each department to discuss their particular needs. If a particular departments IT activities were “served” to them via a Unix platform then it would continue unless it was found to be outdated. This is not brain surgery. If the State of Virginia told NG what they wanted or needed done and NG said it could be done then accepted the contract bid and has not performed, then they surely are in breach of contract. Sound like bait and switch to me!
B55 - They have some welder positions open at Newport News Shipbuilding since this IT thing isn’t working out for you. Be nice to return back to your roots won’t it homie? Then maybe we can get some qualified IT people to put the state IT infrastructure back together from where you and the partnership wrecked it.
Glad NG/VITA employees and supervisors are getting a chance to prove why this is not working. They continually try to do it their way and not meet the requirements of the individual agencies. Let them keep trying to justify this mess by telling the Governor that the empoyess and agencies are not cooperating with NG. The Governor will them order open access to all NG empoyees to our state records then we can all watch as more of what happened at the Health Department occurs. Many of these so called IT employees can not pass the background checks required by state empoyees to work on sensitive information so NG is now demanding open access so they can spend more state money to gain access to our records.
NG/VITA has been bad since day one and will continue to be bad until someone closes them down. All the servers that contain state records and information belong to the citizens of Virginia. These can not be retained by a private firm that is no longer working for the state. NG/VITA is now fighting for their lives and their frredom because somewhere in this mess someone needs to go to jail. That might be why they fired MR Stewart because he had finally had enough and was going to tell the truth.
Good luck investigative group because you may never find out the true story.
Got guts then name names or quit making accusation that can’t be verified. No thought so.
Well-written, Brought. It is fair to say that these guys are state employees who know their IT-related jobs are toast once the state is no longer using cobol.. it’s rough (to keep vested with the state, they may to transfer to a more challenging position if they want to keep their state bene’s).
Northrop has done an exceptional job under the circumstances. Yes, mistakes were made the worst being underestimating the resistance by IT dinosaurs who are holding on tight to their jobs due to the economy (and that nobody is hiring for reinstalling MS-DOS).
Northrop cannot come into a computer room or data center unless they are either invited in or given the passcode. The delays were mostly caused by state employees impeding the process. If they had given Northrop the keys and then got on with their tax-paid jobs, the project would be done by now.
How many times did frustrated Northrop engineers ask for new assignments or have to twiddle their thumbs waiting for the agency.
As to the non-I.T. employees? They are never impacted - the agency IT staff don’t give needed access to even begin the project so how can agency workers be interrupted?
The moral of the story: if the state really wants its systems transformed quickly, first it needs to do something it’s really good at: create a Department of Cooperation.
BeenThere:
Indeed! What Broughton fails to realize is that when all is said and done, IT is not THE business of the state. It is support. And who are its customers? The agencies doing THE business of the state - Social Services, Tax, Education, etc.
The reason there is friction is because of Broughton and his ilk. They want to shut down the government to play with their toys, instead of trying to work with the real civil servants in performing their jobs.
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