I worked on the EDS NMCI contract. This was (is) a 7 year outsourcing contract (now extended to 10). This will provide computer support to the shore-side Navy and Marine Corp, 430,000 seats. So, the idea that this contract was unique is false.
The problems encountered by Northrup Grumman and Virginia read like a history of NMCI. Underscoping is endemic to the bidding process: the contracting organization isn't aware of the entire complexity, and so submits a lower bid than the others. When the low bid is accepted they have a very rude awakening.
My only surprise is that the situation isn't much worse.
This is exactly what I would expect from outsourcing Virginia's
As an employee in IT in Virginia I can tell you that Northrop Grumman was doomed from thee start. They will never be able to meet all the specialized needs of Virginia's state agencies. Had they partnered with the appropriate IT organizations who understand the needs of their respective agencies and made a concerted effort to work with those people they could better understand the requirements and make reasonable determinations about how to fill those needs. Instead they chose heavy corporate hand and made every problem a nail since they have a hammer! This is what you need, you couldn't possibly understand what you need, seems to be the attitude that was taken. Now its lets play the blame game. Virginia Don't have the time or money to waste on petty blame games. Get the job done!
But the system was broken LONG before NG came to the table
I also work in IT for a Virginia locality. The statewide IT infrastructure was broken long before NG was hired. The levels of bureaucracy, levels of incompetence, and overall stupidity were staggering. A simple call to the help desk (what an oxymoron) would result in being transferred no less than 3 times, usually more before you reached a low level tech that would try to help. It was always obvious that whenever I called I knew more about their systems than they did.
I'm not a fan of the NG takeover either, mainly because of the costs being billed back to the localities, by the month. How about paying $50 a month for a switch that only costs $35. I know that in the end this will be touted as a great money saver because the state will be spending less. But only because the localities will be bearing the higher costs.
The only good thing I can say about the changeover is at least now when I've called I've gotten someone who can at actually help.
conversion
I have had similar experiences doing other conversions. Wrong site names, wrong addresses, wrong contacts no access. Then they are upset that you are behind schedule. We are a month behind just redoing the contract to reflect what is really there. Then after approvals and orders start flowing. The specs start changing. People outsource because they finally realize they can not do it. not to save money.
The First Mistake Was Hiring NG
Why hire a company that admittedly has no experience in this space for such a massive undertaking? And locking in for 10 years? No way!
This was total incompetence on the part of the state officials who approved this.
Problem is the bureaucracy
I suspect Northrup actually met _all_ of the initial requirements.
However, those didn't include anything would even smell close to success. Most bureaucrats think magic computing initiatives will overcome process issues. When their own programmers tell them it is impossible, they move the 'good idea' up to management who hire contractors because of their innate belief that brochureware beats in-house expertise.
It's the same way voting work if you think about it.
They deserve each other...
Personally, I think VITA and NG deserve each other. This project has been a puss-filled sore since the beginning. VITA would always "move the goal posts" and expect more than the contract spelled out and NG would deliver just enough to satisfy the contract due to costs.
Now each has to live with the other. VITA will get sub-par service and gear for the next 5 yrs. and NG will hemorrhage money trying to live up to the minimum standards of the contract. In the end, neither will want to renew the contract. I could go on and on about this issue. But I am happy to be leaving the contract.
Good luck and God-speed each of them.
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