Panel ousts Virginia’s technology chief

Panel ousts Virginia’s technology chief

BRUCE PARKER/TIMES-DISPATCH

The ouster of Lemuel C. Stewart Jr.is the latest blow to an agency beset by trouble since its inception more than five years ago.

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LETTER TO STAFF VITA replaces its chief information officer

Virginia's computer czar was fired hours after he questioned a multimillion-dollar monthly bill from the giant company that the state is paying $2.3 billion for informationtechnology services.

Lemuel C. Stewart Jr. was ousted Wednesday as director of the Virginia Information Technologies Agency by its oversight panel, the Information Technology Investment Board.

Leonard M. "Len" Pomata, newly installed as secretary of technology by Gov. Timothy M. Kaine, will succeed Stewart temporarily as Virginia's chief information officer.

Stewart could not be reached for comment yesterday.

Stewart's removal is the latest blow to an agency beset by trouble since its inception more than five years ago. In addition to ongoing administrative and financial questions, VITA recently has had to answer for such issues as the hacking of computerized prescription records at the Virginia Department of Health Professions.

Stewart was dumped shortly after a presentation to VITA's governing body in which he challenged the invoice from Northrop Grumman, which has a 10-year, $2.3 billion contract to supply Virginia agencies with computers, software and maintenance.

One of the General Assembly's experts on information technology, Del. Samuel A. Nixon Jr., R-Chesterfield, said he understood Stewart and Pomata clashed over Stewart's contention that Northrop Grumman is not meeting the terms of its contract.

Pomata, head of the search committee that recommended Stewart in 2004 as VITA director, could not be reached for comment.

Asked about Stewart's presentation and claims that Northrop Grumman is not documenting its bills adequately, company spokeswoman Julia L. Ballesteros said the defense giant "is working closely with VITA to address issues of critical importance."

The pact with Northrop Grumman -- the biggest and richest privatization contract issued by Virginia government -- has been criticized by some legislators and state employees as pricey and inefficient.

The General Assembly's investigative arm, the Joint Legislative Audit and Review Commission, has raised concerns about the system under which Northrop Grumman and VITA charge agencies for IT services.

JLARC, for example, noted that VITA is operating with a deficit -- a point Stewart made as well in his briefing Wednesday to the Information Technology Investment Board.

In a slide presentation, Stewart said the agency's current shortfall is $6.2 million. Because of that, VITA "cannot fully pay [Northrop Grumman] and other bills, absent remedial action," such as increasing rates or a loan from the state treasury.

Stewart's presentation went on to point out that agencies continue to complain about Northrop Grumman-supervised service, that the company is "still not meeting [its] contractual obligations," and that invoices to the state are documented insufficiently.

Stewart's departure was announced to VITA employees in an e-mail yesterday from James F. McGuirk II, chairman of the Information Technology Investment Board.

McGuirk gave no reason for the change but said Stewart would serve as a paid consultant until his $189,280-a-year contract expires at the end of 2009.

McGuirk could not be reached for comment.

VITA was set up under the governorship of Democrat Mark R. Warner, now a U.S. senator, and operates in tandem with Northrop Grumman from a headquarters in Chesterfield County.

Nixon, who introduced legislation tightening governance of VITA, challenged the selection of Pomata as interim CIO. Nixon said he does not believe the secretary of technology has the legal authority to serve simultaneously in both offices.



Contact Olympia Meola at (804) 649-6812 or .

Contact Jeff E. Schapiro at (804) 649-6814 or .

Staff writer Tyler Whitley contributed to this report.

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Reader Reactions

Flag Comment Posted by Jer1234 on June 14, 2009 at 12:46 pm

“The partnership was intended to avoid projected costs, not achieve savings. In addition, VITA’s implementation of IT rates may increase costs at some agencies.
State agencies have identified problems with IT services which may indicate the partnership is unable to provide adequate service. Concerns have also been expressed that the IT governance structure is not” JLARC BRief

Looks like no savings were ever expected and services by NG were inadequate as of DECEMBER 2008.  How much longer do we keep this substandard performance contract.

Flag Comment Posted by Wally on June 13, 2009 at 10:44 am

Virginiagal:  Amen! 

The one size fits all model is one of key shotcomings of the IT parternship.  Partnership management arrogantly think they know best when they really don’t even understand what the needs of the customers are. Then they argue under the guise of saving money and being more efficient when in fact its costing the state exponentially more for an inferior service.

Flag Comment Posted by VirginiaGal2 on June 13, 2009 at 10:25 am

RicResident, I would have to disagree with many of your conclusions.  I worked, as a non-state employee, for a state agency for several years, working directly with the state IT people.  I went on to work and consult for Fortune 500 companies and multiple universities (in IT.)

The NG contract was not adopted b/c agencies were dissatisfied with their IT services.  It was adopted in hopes of saving money.  The comments I’ve heard, from people I trust who still work for agencies, is that satisfaction with IT services has gone down, not up.

The contract has not saved money.  Its benefit to date has been to avoid additional costs associated with infrastructure replacement, per the JLARC review this past year.  Similar cost avoidance can be seen with any hosting agreement, including new options such as cloud computing.  In fairness, being locked into a single source solution does limit the ability to innovate and have competitors drive down prices.

Agency operations ARE different – not arbitrarily so, but because what they do is different.  That is not a problem, much less “the” problem. 

It’s foolish to expect an agency that builds roads, and needs engineering and planning support, to have the same IT needs as an agency that enforces the law and needs special security and round the clock availability of specialized law enforcement applications.  Neither will have have the same needs as an agency that essentially works as a retail distribution outlet (ABC) and needs point of sale and inventory support.

They don’t have the same needs, and while all are working to help the taxpayer, their goals to do that are very different.  For many of their applications they will need software unique to their agency.

Thinking that they are different because they aren’t smart enough to standardize is getting into fantasy land.  One of the worst possible failings of IT people is when you start thinking the business customer is stupid.  They’re not.

Budget structures vary because funding mechanisms vary.  Some activities are funded by the state, some by private grants, some by federal grants, some in cooperation with localities, some a mix of sources.  Each grant has detailed reporting requirements that must be met in order to continue funding.  That is not “a problem” – that is how state government is funded.  It is the business reality that must be accommodated. 

IT is there to support the business – it is NOT the business’s job to shortchange their customers, and with them the public, so that agencies better fit into a standardized IT conceptual model. 

These agencies really are different and beyond the three I pointed out, there’s another 100 or so more.  Normal corporations do not have that range of needs, goals, and operations.  The state is more complex than a regular business – and I’ve worked for multinationals and top financial institutions.  This is a whole different beast and a whole extra level of complexity.

That complexity was known – and pointed out – at the start.  If people didn’t listen, it wasn’t for lack of effort by the agencies.

The agencies are not “gluttonous.”  Wanting enough support to do your job properly and give the taxpayer what they pay for is not gluttony. 

If an agency tasked with training believes a big TV, to deliver remote training, is the best use of their money, because it saves scarce travel dollars – they probably know what they’re talking about.  That is not an IT purchase, BTW.  If an agency that does processor-intensive engineering or epidemiology calculations out in the field believes a high-end laptop will allow it to do a better, more efficient job of designing roads or of stopping the spread of swine flu, they probably know what they’re talking about. 

You are looking solely at expense.  That’s not the right question.  The right question is return on investment – does the value to the taxpayer and the savings elsewhere justify the expense?  The agency is the one tasked to know. 

Our job as IT professionals is to listen to the needs of the business (in this case, providing services the taxpayers pay for) and provide the support they need to get the job done.

One last point.  Spending has not decreased under the partnership.  Further, in my years of working with state IT staff, I saw lean budgets and great care to stretch a dollar – not “unrestrained overspending.”

Flag Comment Posted by johnjay on June 13, 2009 at 6:31 am

CharlesHauge has it right.

Has anyone here actually read the JLARC report? You might learn something . . .

http://jlarc.state.va.us/pubs_rec.htm

Flag Comment Posted by Wally on June 13, 2009 at 5:34 am

IT in the state of Virginia is nothing short of a train wreck. Reverse course now and bring it back in-house its never too late! It will just take a butt load of taxpayer money, which will be wasted either way.

Flag Comment Posted by CharlesHague on June 12, 2009 at 10:08 pm

Great comments but I must correct a few things.  I am retired from DIT/VITA (Sept 2004) and I was there.

The NG contract does NOT predate Mr. Stewart.  The PPA act had passed and there may have been proposals but there was no contract until November 2005.  Mr. Stewart came in early 2004.

vita (small letters in disrespect) was formed July 1, 2003.  It was the brainchild of Mark Warner.  Warner also promised that vita would save the state millions of dollars per year.  The GA had attempted to out source DIT before Warner but he is the one who formed vita and proudly announced the NG contract.

The GA had a chance to stop the NG lunacy during its 2006 session.  I sent multiple e-mails to members of the legislature, the ITIB, and Secretary Chopra warning of the probable consequences, now facts.

It is all very sad.  Virginia brags about being “the best managed state” but that is not reality for state IT.

Flag Comment Posted by BuyAPigNaPoke on June 12, 2009 at 9:06 pm

Sorry folks - the NG contract actually predates Lem. It was well under way before he returned to VITA in its preparation. It was a Public Private Partnership, which in essence means there were no rules to insure fairness and equity in the competitive process. The Procurement folks are the source of the bad contract. The people procuring the contract came from private industry and had NO experience in government contracting, understanding the needs of Agencies, and operating as good stewards of the public trust. The management of the Procurement group should be fired for establishing such a poor contract and for managing NG so poorly. NG had the inside track with VITA long before the contract was written. Agencies are much aware of the horrible morale at VITA, and VITA’s brutal indecision in its dealing with NG. Folks in the various Agencies saw this coming years ago. Sorry Lem you got caught up in this mess.

Flag Comment Posted by Sadstateworker on June 12, 2009 at 8:19 pm

Someone just needs to ask NG/VITA for a reconciliation of the number of computers that state agencies are leasing.  Any answer VITA/NG gives you is a fabrication; know why?  VITA/NG do not know.  After 3 attempts a counting the number of computers at state agencies, VITA/NG can not determine the exact number of computers owned by VITA/NG billed to the Commonwealth. 3 times they have counted and each time they get a new number. 

Know what the bill to state agencies for VITA services looks like, it just states x number of computers multipled by the lease rate=dollars owed; for a multimillion dollar bill!
They are guessing at their inventory, GUESSING!  I do not know who is more as fault here, the state for accepting and paying for bill for service it can not prove it received, and NG for not being able to count the number of computers it owns.

Flag Comment Posted by Jer1234 on June 12, 2009 at 7:25 pm

Folks, you can play the blame game all day long and give the excuses to whoever you want but the bottom line is this.  The NG/VITA contract is NOT working and is increasing the budget of many agencies beyond the point that thye have to cut citizen service to pay VITA for the services. It has been in trouble since 6 months after Gov. Warner created the VITA agency. How much longer does this drain on the state systems continue until some independent group comes in and invetigates the entire program?  I know in my agency if this type of situation was going on there would be heads rolling and people fired. Yes there would. What will it take short of throwing more money at it to fix it?  The infrastructure of the state IT program is broke and limping along by bare bones.  VITA/NG can not be relied upon to provide a quality cost effective service.  Can I, as a day to day user of their services, prove this. Yes anytime any one who honestly wants to see the problem wants too I will show them some of the problems with the services. The trouble is no one cares enough to want to go to the ground level employee and say “Show me what problems you are having with IT services, what do you need to do your job and what are your suggestion to fixing it”. Instead VITA/NG is snooping in to other agency operations trying to find ways to expand their operations instead of trying to fix what thye have.  Yes I can prove this in less than a day.
So again I ask what must be done to fix a problem that every worker knows exist but the Administration is intent on covering up?

Flag Comment Posted by Wally on June 12, 2009 at 7:22 pm

RicRes:

First off if an agency thinks it needs a certain piece of equipment and has a valid business need then they should be able to get it if they have the money to do so. IT is a support function and should not dictate the business requirements of its customers to them.

Secondly had the proper due dilligence been done, the parternship would have known that agencies don’t operate the same.  Again IT is a support function and should conform within reason to the business it is supporting not the business bending to support IT.

It would have made sense to centralize but only around the agencies. Not only does someone in VDOT care less whether a med tech running a lab in VDH is in there address book, its also a bad practice from a security prospective to have all these agencies on a single network and domain. Someone needs a few microsoft design classes!

And by the way my contacts in Newport News shipbuilding say the IT in this NG run facility sucks just as badly for them as it does on the state contract.

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