New York wants SAIC to pay back $600M

Mayor's demand seeks repayment on problem-plagued CityTime project

  • By Washington Technology staff
  • Jul 01, 2011

New York City Mayor Michael Bloomberg wants Science Applications International Corp. to pay back money the city spent on an IT project connected with several indictments and charges of fraud.

Bloomberg is demanding that SAIC reimburse the city more than $600 million it paid the contractor in connection with the CityTime software project, a long-running effort to overhaul the city's payroll system, online Network World reports.

"The city relied on the integrity of SAIC as one of the nation's leading technology application companies to execute the CityTime project within a reasonable amount of time and within budget given the system's size and complexity," Bloomberg is quoted as saying in a June 27 letter to SAIC CEO Walter Havenstein.

Two former SAIC employees on the CityTime project have been indicted and two employees of subcontractor TechnoDyne have fled to their native India, charged in a $450 million fraud indictment.

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