• Budget Task Force Union Representatives Double List of IT and Other Service Contracts for Cancellation: Now at $2 Billion

    August 23rd, 2012 by admin Categories: Blogs Tags: , , , , , , , , , , ,

    As Techwire.Net reported last week:

    A task force created by a budget-related agreement with SEIU Local 1000 to review IT vendor and other private-sector contracts with state agencies has met and started the process to determine which potentially should be cancelled or renegotiated…

    It’s a process commonly known as “in-sourcing” and involves taking contracted out services and bringing then in-house to be performed by state employees.

    The Brown Administration’s budget deal this summer with SEIU included the creation of a Budget Solutions Task Force “comprised of five SEIU representatives and five state government representatives” which is leading this drill.

    Originally, union officials identified 67 IT and non-IT based contracts totaling $1 billion which potentially should be performed by state employees. The latest prioritized list obtained by TechLeader.TV shows that the union lists now is comprised of 65 projects, but significantly has doubled to over $2 billion.

    Such developments are certain to send a shiver down the proverbial spine of state contractors, some with huge stakes in the outcome. I imagine it might also lead more than a few to holler out to their lobbyists.

    Highlights from the list of contracts targeted by SEIU in the IT services areas include:

    • Accenture’s with  five projects totaling over $250 million including the $213 million FI$CAL Project, the state’s long overdue enterprise financial system modernization initiative;
    • Deloitte Consulting with a four projects totaling $213 million including $71 million for consulting maintenance and support for the child support services program, and
    • HP/EDS with two projects totaling $100 million for HHS related consulting services maintenance and fingerprint imaging projects.

    In non-IT Services:

    • Maximus was the big winner (or loser) with five projects at $803 million including $360 million for Healthy Families Administration and $411 million for Health Care Services Medi-Cal managed care. These two projects with eligibility determination, enrollment and case management actually have major IT services components, and
    • The GEO Group with $280 million from Corrections for housing out of state prisoners.

    Lastly, and perhaps most regrettably, some $23 million in University Enterprise contracts, primarily student assistance positions, many in IT functions across state government agencies, were singled out by SEIU for cancellation.  C’est dommage…

    The diminution  of technology as a strategic resource in state government operations continues…

    We will continue to follow these developments, as the task force’s next meeting is August 28th.

    See full list of projects here, sorry about scan quality:



















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