Seeking escape from state computer mess

Northrop Grumman and a handful of top state officials are at it again, tinkering with a $2.3 billion computer contract in back-room talks that continue to undermine confidence in the state's largest public-private partnership.

The state's new chief information officer, George Coulter, promises to vet any revisions with outgoing Gov. Tim Kaine and state lawmakers, but he's been unclear about exactly what changes are being discussed and how much they could end up costing taxpayers.

Coulter needs some flexibility to address problems that weren't contemplated when the state signed a 10-year contract with Northrop Grumman in 2005. For example, the federal government is insisting that encryption software be installed on state laptops used to store data on health insurance, disability benefits, taxes and unemployment programs.

Such security carries an obvious urgency, but the Northrop Grumman contract has a process for addressing unanticipated needs. There's no reason to make routine service amendments on the sly, and there are even stronger arguments against making fundamental changes to the contract two months before a new governor is inaugurated.

State officials have declared Northrop Grumman in breach of its contract. Analysts with the Joint Legislative Audit and Review Commission laid much of the blame on the company's own poor planning, but the watchdog agency also acknowledged the state's internal technology team failed to assess the needs of dozens of agencies housed in 2,000 separate offices scattered around the commonwealth.

It's unrealistic to think that the state can simply cancel its deal with Northrop Grumman and walk away now. Financial penalties could cost taxpayers $300 million or more. A court battle would be inevitable.

More problematic, the company hired 566 of the state's information technology workers and constructed a state-of-the-art data center to run its operations.

State officials know they're over an expensive barrel, and they'll ultimately need to hash out a solution with Northrop Grumman.

But Gov.-elect Bob McDonnell must be a party to those talks, since it'll be his problem for the next four years. Legislators are contemplating much-needed changes in state law that would give McDonnell greater authority over IT services and the Northrop Grumman contract.

Their refusal to grant previous governors that same power makes lawmakers culpable in the mess. But legislators also are threatening to micromanage the contract by writing restrictions into the state budget, an ill-advised level of interference that may well make matters worse.

Given the mixed signals being sent from the General Assembly, it's understandable that Coulter is eager to sort out the contract before they arrive at the state Capitol in January. But a true cure for Virginia's IT ills can't be concocted in secret. Too many bad decisions have already been made behind closed doors.