The Virginian-Pilot
©
RICHMOND
Virginia's technology agency is giving Northrop Grumman Corp. two months to come up with a plan get its overhaul of the state computer network back on track.
The 10-year, $2 billion deal has been scrutinized by legislators wondering why several key performance deadlines have been missed.
Most notably, the state technology transformation was supposed to be complete by the end of June but is about six months behind.
In a letter Tuesday, the state reminded the company of the missed deadlines and demanded a corrective plan.
The letter from the Virginia Information Technologies Agency also served as notice that the state believes Northrop Grumman is in breach of its contract. That protects the state's legal rights should it seek to penalize the firm or void the contract.
Yet even those most critical of how the technology transformation process has been handled say it is premature to talk about canceling the deal.
"Northrop Grumman agreed to step into the puddle, but they weren't sure deep it was until they got into it," said Del. Sam Nixon, R-Chesterfield County, who crafted 2003 legislation that helped pave the way for privatization of the computer network.
Likewise, Nixon added, state agencies didn't realize how involved the process would be and some have resisted the change.
Christy Whitman, a Northrop Grumman spokeswoman, said the company "is finalizing a plan to get transformation of the commonwealth's IT infrastructure back on schedule."
The computer systems contract was signed in 2005 and billed as a pact that would provide savings to the state.
To date, those savings have not been achieved, though spending has been capped.
In April, a hacker attack breached a state prescription drug Web site that contained millions of patient records.
Then the state's chief information officer was removed from his job in June after suggesting that Virginia withhold payment on a $14 million invoice from Northrop Grumman.
Virginia is the first state to undertake a public-private venture of this scope for the administration of its computer systems.
Julian Walker, (804) 697-1564, julian.walker@pilotonline.com

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Taking ownership
I think the state needs to take some ownership and responsibility for the delays and many of the problems. It is my understanding that one reason that deadlines have not been met is because state agencies have fought the change and refused to give Northrop Grumman access to sites and systems so the changes could be made.
While I agree that the company should be held accountable for contractual agreements I do not think that the blame falls solely on Northrop Grumman.
What I would like to see is how many of the delays and problems were caused from things within Northrop Grumman’s control and how many were the cause of the states reluctance and refusal to change.
NG doesn't sound at fault
They are working on a non-defined item. The end state is known, but the path to achieve it can only be vaguely defined. Any new technology will go past estimates. Reality is reality. I'm thinking those who see this as a scam are really seeing their own hearts. They beleive every corporation is out to steal and short change. If that describes you, then you live in an emotional state of judgment, which has nothing to do with truth or objectivity.
Spend time working on contracts and truth soon emerges. In cases such as this, its the politicians who are demanding retribution who are at fault. They are trying to make brownie points with voters it seems. They're trying to play the hero on someone elses shoulder and checkbook. If this seems normal to you, you will keep voting them into office.
REALISTIC DEADLINE
I personally would give NG only a month to fix the issues, if they were providing services for my business. That being said -- two months should be enough for them to fix this royal mess. Northrop Grumman needs to put whatever resources it has into fixing these problems. If they can't do this within the time frame that the state specifies -- the contract with them needs to be cancelled. As well, the former state CIO who suggested withholding payments to NG in order to force corrections in the problems -- should be reinstated.
Northrop Grumman has 2
Northrop Grumman has 2 months to come up with a plan to fix the system, not 2 months to fix it. The state system is extremely complex and to suggest that they fix it immediately is unrealistic. Seldom is such a huge undertaking in computer networking without any problems. I surmise many of those problems are similar to most other companies,
1] the people for the state who are overseeing the project keeps making changes.
2] they are unqualified to assess exactly what it is Northrop is doing.
With that being said, NG installs computers for the military, they obviously are qualified.
IS SUFFICIENT
It is obvious to me that NG is qualified as a IT contractor. I worked with them in the past and I know they can do excellent, efficient work -- ahead of deadlines and under budget. That's why I'm appalled at all of this. It's quite obvious that NG has had a massive breakdown here. This can only be attributed to poor project management on the part of NG -- and for the size and scope of this company -- that's inexcusable. Sure there's blame to go around here -- such as the state asking for changes. But that's when you have a code lock date -- and you enforce it. Sure big IT projects can have big issues (I've been there on that) -- but that's where good project management comes into play. And getting rid of a CIO that has made a qualified assessment about the issues -- is just dumb. Big or small company -- NG messed up big time here -- and they need to do everything they can to fix the issues.
The Government
When it come to the government and computers, they will never get it right. Ask Virginia beach
Unrealistic Deadlines
I feel for the programmers at Northrup Grumman; I'm sure they are coding and testing as fast as they can. The timeline must have been unrealistic.
It is normal for coding projects to take longer than expected. It is seldom the reverse.
The state needs to understand that and give them an adequate extension. Now that they are deep into the project, they may have a better feel for how long it will really take to complete.
How...
one way are these contracts? Non-performance penalties should be part of any contract. Will the tax payers ever see a 'rebate' from the likes of NG if they cannot fix this?
I agree...
and the only man with the courage to step and and say something about it gets fired!
Sounds like maybe some kickbacks are in play here...