For CityTime Company, the Contracts Keep Coming
June 2nd, 2011

New York’s City almost epic problems with Science Applications International Corp., or SAIC, have not kept the Virginia company from continuing to rake in multimillion, if not billion, dollar contracts from other governments.

This week, the Bloomberg administration cut more ties with SAIC, the main contractor on the automated payroll system, cancelling a $50 million deal with the company on what city officials described as an unrelated system

The move reported by the Wall Street Journal earlier this week, came after the arrest of a former company executive, Gerald Denault, on charges he accepted millions of dollars in kickbacks on the City Time contract.

(Find out who’s hiring SAIC now, after the jump.)

Last year, four consultants with a company called Spherion Staffing Services who were supposed to be monitoring Science Application’s work on CityTime were charged with “operating a fraudulent scheme that led to the misappropriation of more than $80 million in New York City funds” for CityTime.

And over the years, the cost of CityTime ballooned nearly 10-fold. “Defense programs routinely overrun their original budgets, but I can’t recall one reaching the level of “special achievement” that the CityTime project of New York City has been able to accomplish,” Robert Charette wrote in the “Risk Factor” blog last year.

(A tidbit we can’t resist: Also in 2010, Crain’s painted a sympathetic view of innovative SAIC fighting to provide the city with a payroll system despite intransigent unions, technologically challenged bureaucrats and an unreasonable city comptroller. The key source? Denault, who, it says, “occupies a windowed 25th-floor office in the heart of Koreatown. Despite the airy surroundings, Mr. Denault was suffering from a bronchial infection one fine spring day last month, his congested breathing a fitting metaphor for the huffiness he feels over the troubles ensnaring CityTime.”)

That aside, whatever SAIC’s questionable — and possibly felonious — work for the city, the company continues to get work.

Newsday’s Yancy Roy writes today that SAIC has some 20 contracts totaling $44 million with “various” New York state agencies. The state comptroller’s records, Roy reports, show the largest of it, by far, is a $23.7 million agreement “to provide an ‘imaging and enterprise document repository’ to the state Office of Temporary and Disability Assistance.” The Department of Correction has a $7 million deal with the Virginia firm. (In case youre wondering, Denault faces federal, not state charges, so is not likely to avail himself of the department’s facilities.)

Only three days after Denault’s indictment, the federal General Service Administration awarded SAIC a contract, worth up to $1 million to provide various information technology services to the Department of Veterans Affairs.

And earlier last month the company announced the Defense Department had chosen it for a contract, with a worth of up to $53 million for electronic record keeping (see CityTime) and other information technology services for a military health program. But that seems like chicken feed compared to the contract worth $340 million to $1.3 billion Science Applications has to manage computer networks and communications for the National Aeronautics and Space Administration. And it has a $25 billion contract with the State Department to run an information technology system. And so on.

An article in Washington Technology trumpets the company’s achievements, saying that, in the past year, it won 26 contracts worth $100 million or more.

The article makes no mention of CityTime.

By on June 2, 2011, 2:26 pm
In category: City Hall,Governing,Public Finance,Tech | 12 Comments »

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