Florida cancels two outsourcing contracts

Florida cancels two outsourcing contracts

The Florida State Office of Technology yesterday said within 90 days it will terminate contracts with BearingPoint Inc. for data center services and with Accenture Ltd. for applications management.

The cancellations essentially kill the state's groundbreaking outsourcing project known as the MyFlorida Alliance. The State Technology Office also has asked the Department of Law Enforcement to investigate improprieties that may have occurred during bidding for MyFlorida Alliance contracts. The office plans to turn over communications between the agency and one of the bidders that occurred before the state issued a solicitation for the program.

The announcement came after state CIO Simone Marstiller's assurances last month that the state intended to move forward with the programs.

BearingPoint of McLean, Va., had a seven-year, statewide data center contract worth $126 million. Accenture of Hamilton, Bermuda, had a seven-year statewide applications management contract valued at $46.7 million. The State Technology Office in August terminated the other major piece of the MyFlorida Alliance program, a seven-year, $87 million help-desk contract with Accenture. At the time, Marstiller indicated the other programs would continue, saying, 'We may need to shore things up here and there, but those [contracts] are not problematic.'

The MyFlorida Alliance contracts were awarded under the leadership of former state CIO Kim Bahrami in 2003. Bahrami resigned from her post in February. Marstiller, an attorney, succeeded Bahrami in May.

The MyFlorida Alliance began unraveling after the July release of a blistering report by the state auditor general. The report charged that the state technology office under Bahrami did not sufficiently document its decision to outsource, did not properly evaluate the bids and did not establish detailed contract provisions to protect state resources.

In a press release announcing the final termination of the MyFlorida Alliance contracts, Marstiller said the two companies had 'worked hard to provide the state with quality services' while performing on the contracts for the past year. But after further review, she decided to terminate all contracts related to the MyFlorida Alliance.

About the Author

William Welsh is a freelance writer covering IT and defense technology.


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