- Report Published -
|Interim Review of the Virginia Information Technologies Agency|
|Joint Legislative Audit and Review Commission|
|SJR 129 (Regular Session, 2008)|
|Senate Joint Resolution 129 and Item 29 (E) of the Appropriation Act from 2008 directed JLARC to examine VITA’s services, some of which are provided through a partnership with Northrop Grumman.|
Annual payments to Northrop Grumman are subject to a $236 million cap, but it can be exceeded if inflation occurs or if the State buys new IT services. Northrop Grumman is guaranteed a minimum payment, equal to $177 million in FY 2009, but it depends upon appropriations.
The transformation to Northrop Grumman’s management of IT has been delayed because of inadequate planning by Northrop Grumman and a reported reluctance by some agencies to support transformation.
The partnership was intended to avoid projected costs, not achieve savings. In addition, VITA’s implementation of IT rates may increase costs at some agencies.
State agencies have identified problems with IT services which may indicate the partnership is unable to provide adequate service. Concerns have also been expressed that the IT governance structure is not fulfilling its purposes.