Florez: Oracle took Calif. 'to the cleaners'

California Assemblyman Dean Florez last week predicted imminent cancellation of the state's bitterly disputed, $97 million enterprise license contract for Oracle Corp. database software.

Oracle and reseller Northrop Grumman Information Technology of Herndon, Va., have 'expressed eagerness to be out of this deal,' said Florez, chairman of the Joint Legislative Audit Committee.

'We got taken to the cleaners,' Florez said, despite Oracle's 'insistence that the state got a fabulous, fabulous deal' in paying more than $52 million for a software license worth $36 million.

Oracle officials, while acknowledging that they would work with the state to break the contract, have continued to stand behind the value and benefit of the license deal.

Florez called it astounding that no one in the administration asked for a lower price. Furthermore, he said, the vendors tried to hide information from the state. 'Whether their conduct amounts to fraud or misrepresentation will be for the attorney general to decide,' he said.

About the Author

Trudy Walsh is a senior writer for GCN.

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