California pulls plug on $95m Oracle contract

7 August 2002
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08 August 2002

California has cancelled a bungled $95 million IT contract that saw the axing of its procurement agency that carried it out.

The state government reached an agreement with software provider Oracle and supplier Logicon to cancel the six-year deal, signed in 2001, for an e-procurement system.

An independent audit earlier this year concluded that the system would not save California taxpayers $100 million, but cost them $41 million instead.

Gray Davis, the state governor, closed down the Department of Information Technology in July shortly after issuing an executive order decreeing all contracts over $100,000 must go out to tender.

SMaug2002

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