How to royally foul-up an IT outsourcing project

15.10.2009
Virginia’s IT operations to Northrop Grumman was supposed to put the state’s network beyond politics, but the effort has in almost every respect.

The $2 billion, 10-year contract with n calls for a network overhaul – or transformation as the state calls it –is months behind scheduled despite repeated deadline extensions.

Network services to agencies have been cut off or have been poor enough to affect the services agencies deliver to the public.Members of boards are overstepping their authority to negotiate with Northrop Grumman and the chain of command is so fragmented that it’s difficult to get any one entity in control of the problems.

This is all according to a report issued this week by the states Joint Legislative Audit and Review Commission (JLARC), which points a finger at Northrop Grumman, but also at boards, agencies and individuals for problems like these:

• In May, Virginia State Police in Newport News lost Internet access for 78 hours, affecting the ability to perform its duties.

• Also in May Environmental Quality in Roanoke lost its network connection for 31 hours.