Virginia and its embattled computer-services contractor, Northrop Grumman, have reached terms on a new deal -- one that will extend their contentious relationship until 2019 and cost taxpayers at least an additional $140 million.
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Showing posts with label NG. Show all posts
Showing posts with label NG. Show all posts
Wednesday, April 07, 2010
Thursday, June 18, 2009
Va. Senate panel to investigate VITA
JEFF E. SCHAPIRO TIMES-DISPATCH STAFF WRITER
Published: June 16, 2009
Lawmakers will investigate the state's troubled information technology agency, spurred by the removal of its boss and questions about the $2.3 billion Virginia is paying Northrop Grumman for computer services.
A state Senate panel that oversees government operations will conduct the inquiry and report to the Senate Finance Committee, whose chairman, Sen. Charles J. Colgan, D-Prince William, ordered the review.
"I believe the full committee would benefit from a discussion of the issues and allegations," Colgan said in a letter Friday to Sen. Yvonne B. Miller, D-Norfolk, head of the general-government subcommittee.
The investigation, disclosed yesterday, follows the removal Wednesday of Lemuel C. Stewart Jr. as director of the Virginia Information Technologies Agency. He was dumped after he alleged that Northrop Grumman is failing to provide the state with full computer, software and maintenance services.
"We have nothing to hide, and we have no problem answering the legislature's questions," said James F. McGuirk II, chairman of the Information Technology Investment Board, which voted to drop Stewart from his $189,280-a-year job as chief information officer.
Christy Whitman, a spokeswoman for Northrop Grumman, said the company has "not been contacted about the investigation, but we continue to support the customer," a reference to VITA.
The Senate Finance Committee is expected to discuss the controversy engulfing VITA at a meeting Thursday. The money panel will hear from the staff of the General Assembly's watchdog agency, the Joint Legislative Audit and Review Commission, which has been monitoring implementation of the 10-year contract with Northrop Grumman.
Miller's subcommittee begins its work at a meeting June 29. It was not immediately clear when the subcommittee would turn over its findings to the Finance Committee.
Del. M. Kirkland Cox, R-Colonial Heights and the JLARC chairman, said the concern about VITA -- an initiative of Democratic Gov. Mark R. Warner -- is growing.
"We hoped when VITA came in, it would be a little removed from politics, and I think it's almost gotten to be the opposite," Cox said.
Republicans have expressed alarm over the selection of Secretary of Technology Leonard M. "Len" Pomata as Stewart's temporary successor. They question whether a political appointee of Gov. Timothy M. Kaine can serve simultaneously as head of an agency that, by law, is independent of the executive branch.
Kaine defended the selection and said Pomata will bring to VITA "the skill set that's needed at this point."
Under VITA, the Warner administration envisioned consolidating IT services previously left to individual agencies. The umbrella approach, Warner claimed, could save taxpayers $100 million.
Stewart apparently had expressed concerns for more than a year about the Northrop Grumman contract and had withheld payments to the company, usually in amounts of $600,000 to $700,000, on items such as modifications to VITA offices in Chesterfield and Russell counties and a procedures manual for employees.
Because of his continuing questions about the adequacy of documentation by Northrop Grumman in the bills its submits to the state, Stewart urged freezing a monthly payment of just more than $14 million. That recommendation preceded his removal.
The Northrop Grumman contract, now in its third year, is the biggest privatization pact issued by Virginia government. The contract is financed with fees imposed on agencies for IT services. But the charges are insufficient, resulting in a continuing shortfall -- $6.2 million, according to Stewart's final briefing to the VITA governing board.
The dispute over VITA is being monitored by the gubernatorial candidates, Democrat R. Creigh Deeds and Republican Bob McDonnell. As legislators, both backed its creation.
Published: June 16, 2009
Lawmakers will investigate the state's troubled information technology agency, spurred by the removal of its boss and questions about the $2.3 billion Virginia is paying Northrop Grumman for computer services.
A state Senate panel that oversees government operations will conduct the inquiry and report to the Senate Finance Committee, whose chairman, Sen. Charles J. Colgan, D-Prince William, ordered the review.
"I believe the full committee would benefit from a discussion of the issues and allegations," Colgan said in a letter Friday to Sen. Yvonne B. Miller, D-Norfolk, head of the general-government subcommittee.
The investigation, disclosed yesterday, follows the removal Wednesday of Lemuel C. Stewart Jr. as director of the Virginia Information Technologies Agency. He was dumped after he alleged that Northrop Grumman is failing to provide the state with full computer, software and maintenance services.
"We have nothing to hide, and we have no problem answering the legislature's questions," said James F. McGuirk II, chairman of the Information Technology Investment Board, which voted to drop Stewart from his $189,280-a-year job as chief information officer.
Christy Whitman, a spokeswoman for Northrop Grumman, said the company has "not been contacted about the investigation, but we continue to support the customer," a reference to VITA.
The Senate Finance Committee is expected to discuss the controversy engulfing VITA at a meeting Thursday. The money panel will hear from the staff of the General Assembly's watchdog agency, the Joint Legislative Audit and Review Commission, which has been monitoring implementation of the 10-year contract with Northrop Grumman.
Miller's subcommittee begins its work at a meeting June 29. It was not immediately clear when the subcommittee would turn over its findings to the Finance Committee.
Del. M. Kirkland Cox, R-Colonial Heights and the JLARC chairman, said the concern about VITA -- an initiative of Democratic Gov. Mark R. Warner -- is growing.
"We hoped when VITA came in, it would be a little removed from politics, and I think it's almost gotten to be the opposite," Cox said.
Republicans have expressed alarm over the selection of Secretary of Technology Leonard M. "Len" Pomata as Stewart's temporary successor. They question whether a political appointee of Gov. Timothy M. Kaine can serve simultaneously as head of an agency that, by law, is independent of the executive branch.
Kaine defended the selection and said Pomata will bring to VITA "the skill set that's needed at this point."
Under VITA, the Warner administration envisioned consolidating IT services previously left to individual agencies. The umbrella approach, Warner claimed, could save taxpayers $100 million.
Stewart apparently had expressed concerns for more than a year about the Northrop Grumman contract and had withheld payments to the company, usually in amounts of $600,000 to $700,000, on items such as modifications to VITA offices in Chesterfield and Russell counties and a procedures manual for employees.
Because of his continuing questions about the adequacy of documentation by Northrop Grumman in the bills its submits to the state, Stewart urged freezing a monthly payment of just more than $14 million. That recommendation preceded his removal.
The Northrop Grumman contract, now in its third year, is the biggest privatization pact issued by Virginia government. The contract is financed with fees imposed on agencies for IT services. But the charges are insufficient, resulting in a continuing shortfall -- $6.2 million, according to Stewart's final briefing to the VITA governing board.
The dispute over VITA is being monitored by the gubernatorial candidates, Democrat R. Creigh Deeds and Republican Bob McDonnell. As legislators, both backed its creation.
Tuesday, December 09, 2008
IT deal no money saver yet for state
Virginia taxpayers may have to wait a decade or more to see if the state's $2 billion switch to privately run information technology services saves money.
A report yesterday by the General Assembly's investigative arm said the transition -- started in 2005 -- has been slow and difficult.
[entire article]
A report yesterday by the General Assembly's investigative arm said the transition -- started in 2005 -- has been slow and difficult.
[entire article]
Monday, August 29, 2005
State ponders deal to rebuild IT infrastructure
Virginia's information technology agency is considering an outsourcing contract for the state's IT infrastructure that could, with a three-year option, run as long as 13 years.
[entire article]
[entire article]
Thursday, August 18, 2005
Saving Money? Or VITA-fying it?
As I was pouring over various Web pages and documents, looking for something to rail against, I ran across a subpage of the Virginia.gov site. The Virginia portal (that's a website that goes to other websites, or one of those things on Star Trek that takes you to the Gamma Quadrant), long one of my favorite government sites, is part of what appears to be the ever-cloudy legacy of IT gone sour in Virginia. The portal is claimed as one of the few VITA success, using the model of the public-private partnership to bring government to citizens.
Only, after a bit of digging and some calling around, the numbers don't add up.
A private vendor is responsible for maintaining the Virginia.gov portal. That company is Virginia Interactive, which is part of a larger Corporate Entity called NIC Inc. Virginia Interactive gets paid something in the neighborhood (and a nice neighborhood it is) of $4 million a year to keep the portal lights on. VITA holds the contract and seems to think they're getting their money's worth. Well, let's do the numbers, shall we?
Judging from what many states pay, and taking into account the Virginia site is mostly static HTML, you can keep the site going and fairly fresh with one FTE (Full Time Employee), one server, and one T1 connection. Pay the FTE about $45k a year (it's just HTML and pictures), buy the server at a reasonable $3,000, and pay for the T1 at a slightly painful $6,000 a year, and you get a total of: $54,000 a year (I know, the server doesn't burn out every year, but the math is easier). For a grand total profit of $3,946,000 a YEAR.
That's a lot of scratch, me buckos.
One insider pointed out that for that $3.9 million, the vendor does a lot of free work. Like what? Hard to say. The State Payment Portal? There's an extra fee attached. Hunting and Fishing licenses online? Fee. Health Professions information? Fee. Lobbyist in a box? Service of Process? PEO Services? Web design? Fee, fee, fee, fee.
DMV records? Well, that's got some wiggle room. Assuming for the moment that DMV can't figure out how to get THEIR DATA online in an "enhanced" manner, the technology being used is fairly old and standardized. Is it worth $3.9 million a year? Many say, "Hell no." A million, maybe. If you aren't charging for all that other stuff, too.
So, only $2.9 million a year in profit? Hardly sounds like VITA is saving the state any money, does it? I'll do it for $1 million a year, and save the state almost $2 million a year. How's THAT for cost-savings...
Makes me wonder what we're in store with the RFPs being reviewed from IBM and Northrop. A billion a year to cut grass?
Only, after a bit of digging and some calling around, the numbers don't add up.
A private vendor is responsible for maintaining the Virginia.gov portal. That company is Virginia Interactive, which is part of a larger Corporate Entity called NIC Inc. Virginia Interactive gets paid something in the neighborhood (and a nice neighborhood it is) of $4 million a year to keep the portal lights on. VITA holds the contract and seems to think they're getting their money's worth. Well, let's do the numbers, shall we?
Judging from what many states pay, and taking into account the Virginia site is mostly static HTML, you can keep the site going and fairly fresh with one FTE (Full Time Employee), one server, and one T1 connection. Pay the FTE about $45k a year (it's just HTML and pictures), buy the server at a reasonable $3,000, and pay for the T1 at a slightly painful $6,000 a year, and you get a total of: $54,000 a year (I know, the server doesn't burn out every year, but the math is easier). For a grand total profit of $3,946,000 a YEAR.
That's a lot of scratch, me buckos.
One insider pointed out that for that $3.9 million, the vendor does a lot of free work. Like what? Hard to say. The State Payment Portal? There's an extra fee attached. Hunting and Fishing licenses online? Fee. Health Professions information? Fee. Lobbyist in a box? Service of Process? PEO Services? Web design? Fee, fee, fee, fee.
DMV records? Well, that's got some wiggle room. Assuming for the moment that DMV can't figure out how to get THEIR DATA online in an "enhanced" manner, the technology being used is fairly old and standardized. Is it worth $3.9 million a year? Many say, "Hell no." A million, maybe. If you aren't charging for all that other stuff, too.
So, only $2.9 million a year in profit? Hardly sounds like VITA is saving the state any money, does it? I'll do it for $1 million a year, and save the state almost $2 million a year. How's THAT for cost-savings...
Makes me wonder what we're in store with the RFPs being reviewed from IBM and Northrop. A billion a year to cut grass?
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