New Virginia IT executive will tackle quite a mess

RICHMOND

The hiring of George F. Coulter as a top state technology executive resolves a seven-month search for a chief information officer.

Whether it helps fix problems in the state's 10-year, $2.3 billion deal with Northrop Grumman Corp. to overhaul Virginia's computer system - or improve employee confidence in its operations - remains to be seen.

Coulter, of Loudoun County, walks into a messy and politicized situation typified by a privatization contract that is months behind schedule on several performance measures.

Former chief information officer Lem Stewart suggested withholding a $14 million payment owed to Northrop Grumman. Stewart was removed from his job not long after.

The subsequent naming of Virginia technology secretary Len Pomata to temporarily fill that job prompted an outcry from Republican legislators who objected to his dual roles. An opinion issued last week by Attorney General Bill Mims concluded the chief information office and technology secretary jobs should not be held by the same person.

Republicans then called for Pomata's resignation, which Gov. Timothy M. Kaine said would occur once a replacement is named. The resignation could come as early as next week when Coulter is expected to start his job, deputy technology secretary John McDonald said Thursday.

Coulter previously held a similar job with Solera Holdings Inc., which provides software and services to the automobile insurance claims industry.

His new state job comes with a five-year contract and an annual salary of nearly $192,000.

"I'm confident that he's not going to knee-jerk his way through this," said Bert Reese, a Sentara Healthcare technology executive who led the search committee. "And he's a seasoned veteran and he's not going to get stampeded into action."

A Northrop Grumman official praised the hiring of Coulter.

"His extensive experience leading large, global IT transformations will offer an excellent perspective on the mission and goals of the IT Infrastructure Partnership program," spokeswoman Christy Whitman wrote in an e-mail.

The company is working to complete technology upgrades and resolve lingering problems. It has been given an Aug. 30 deadline to present the state with a plan to do that.

In April, Northrop Grumman officials informed the state that the company might need to exceed the $236 million annual payment cap it had agreed to in order to continue providing technology services.

Meanwhile, a legislative panel is probing problems with the deal. Also, a Joint Legislative Audit and Review Commission analysis is expected to be done by October.

Julian Walker, (804) 697-1564, julian.walker@pilotonline.com