Lawmakers eye using budget as a tool against Northrop Grumman in IT deal
RELATED: |
State lawmakers are floating the idea of using the budget as a hammer to force the state's IT contractor to make do with $236 million in annual payments.
Members of the House Appropriations Committee yesterday criticized both the state and Northrop Grumman during a nearly two-hour report on a state watchdog group's investigation of the state's privatization deal. The budget writers spread the blame -- poking at everything from the state's lack of an accurate count of its equipment to murky language in the contract with Northrop Grumman.
Their concerns could indicate the sentiments of a broader segment of General Assembly members about the $2.3 billion, 10-year pact and may portend a collision between the legislature, the governor's office and Northrop Grumman.
The legislature is resolute that Northrop Grumman make do with current payments from the state. However, the company and Gov. Timothy M. Kaine's administration have discussed revisions in the agreement that could send an extra $30 million to $40 million annually to the company.
Committee members yesterday balked at potential contract modifications that would increase Northrop Grumman's take beyond the annual cap of $236 million. The company has maintained it is providing the state more than it is paying for. A spokeswoman declined to comment on yesterday's developments.
Del. Phillip A. Hamilton, R-Newport News, suggested a scenario in which contract costs would rise but the state would not allot more money. The Virginia Information Technologies Agency, which inked the deal with Northrop Grumman in 2005, bills state agencies for its services and then pays Northrop Grumman.
"We don't necessarily have to appropriate anything," Hamilton said. "But what happens is the agency would have less money to spend on its core mission if it's got to use funds to pay the bill."
The Appropriation Committee controls how much state agencies receive, and Robert Vaughn, its staff director, said members could add language to the budget to limit the IT spending.
"Which I think is a pretty good idea," said Del. Joe T. May, R-Loudoun, an IT businessman and the chairman of a House committee that also looked into the state-Northrop Grumman deal.
Members didn't discuss exactly how that the budget ploy might work or any potential repercussions.
In spreading the blame for the troubled project, May said some state agencies had no idea what equipment they had at the start of the deal.
"A very substantial percentage had not the foggiest idea of what was in existence within their agency," he said.
But he cautioned against talk of ending the deal -- the state's largest-ever privatization pact. In front of an audience of legislative staffers and lobbyists, including a Northrop Grumman contingency of at least a dozen, May said scrapping the contract is not like "a matter of changing to a new dry cleaner."
Contact Olympia Meola at (804) 649-6812 or
.
Advertisement
Reader Reactions
In consideration of the poor service received and the subpar equipmnt provided to the state, why should the state pay anything to an organization that repeatedly failed to meet the standards of the contract?
“this was sold on the floor of the House as saving $100 million.“
The agencies were only ones that did not buy this saving $100 million crap.
No one would listen to the agencies.
It was said and still being said the agencies don’t want change. But change at this cost and future cost?
The money could have been given to the agencies to make the necessary upgrades. That could have saved the $100 million.
Not appropriating funds above the $236 million cap is a great idea! Unfortunately, the unintended consequences will probably be:
Service to the agencies, already dismal, will become worse.
Vital services needed by agencies will not be available.
NG will raise costs in future years to recover what they won’t get paid during the appropriations limit.
One of the good things to come out of the recession is the drop in tax revenues forcing the General Assembly to make hard decisions they should have been making all along.
During the JLARC meeting last week, one Delegate, referring to the NG contract, sadly repeated several times “this was sold on the floor of the House as saving $100 million.“
Sounds like someone (Mark Warner et al) sold the General Assembly a real clunker with lots of unintended consequences!
NG can made do with 236 million or hit the road. All state employees are making do with no raise and working the same hours or more.
They will also loose one day pay next year.
One day is better than no job.
Suck it up NG or leave.
Spineless Governor and an equally namby-pamby legislature. How long will they permit this imbecility to last? The men and women of the legislature, in particular, are mere ruffians deserving of the curses of mankind.
Post a Comment(Requires free registration)
- Please avoid offensive, vulgar, or hateful language.
- Respect others.
- Use the "Flag Comment" link when necessary.
- See the Terms and Conditions for details.
Advertisement