U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Great Debates
 [Register]
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jump to a detailed profile or search
site with Google Custom Search

Search Forums  (Advanced)
Business Search - 14 Million verified businesses
Search for:  near: 
Reply Start New Thread
 
Old 08-20-2010, 10:38 AM
 
1,462 posts, read 569,559 times
Reputation: 790

Advertisements

An excellent example is the Commonwealth of Virginia's privatization of its computer systems for all state agencies. By outsourcing to Northrup Grumman, the goal was uniformity, costs savings by buying bulk and modernization. All parties agree that the only thing it has accomplished is that costs has gone up and efficiency has gone down and the Commonwealth's citizens are left holding the bag and paying more. (While NG makes political contributions all over the place.) Finger pointing is rampant and the agency that has to monitor the program, VITA says in its reports to the General Assembly it does not have adequate staff for oversight.

Overbilling, double billing, incomplete services, missed deadlines, purchases of inferior products and major computer security breeches are the result (system has been hacked into and the cable sending the backup data to Lebanon for disaster recovery was cut; the proposal for two backup cables was rejected by NG for being too expenisve). In the end, NG is looking at no profit, the Commonwealth is paying more. It is such a failure that NG has abandoned hope of gettting all local governments to participate and independent agencies that not part of the executive branch refuse to particpate.

The problem is when a private company takes over, they are only concerned about profit, while state employees recognize their loyality is to the citizens.

Last edited by newhandle; 08-20-2010 at 10:48 AM..
Reply With Quote Quick reply to this message

 
Old 08-22-2010, 09:53 PM
 
Location: Missouri
3,383 posts, read 1,640,319 times
Reputation: 1384
Quote:
Originally Posted by newhandle View Post
The problem is when a private company takes over, they are only concerned about profit, while state employees recognize their loyality is to the citizens.
Another problem is that a big company like Northrup Grumman can be as inefficient and beaurocratic as a government office is.
Reply With Quote Quick reply to this message
 
Old 08-27-2010, 01:34 PM
 
1,462 posts, read 569,559 times
Reputation: 790
Earlier in this thread I posted the problems the Commonwealth of Virginia has had since it privatized its computer systems in a deal with Northrup Grumman. For the second straight day, most of the government of Virginia is down due to a crash of the entire system. That means no vehicle sales, no driver's licenses, no testing for clean water, clean air, state police is having trouble, no tax refunds, nothing.

Here is the email:

DATE: Aug. 26, 2010

TO: Local and State Staff

FROM: Barbara Hilton, Technical Program Manager

SUBJECT: Server Issues Affecting Multiple State Agencies

CONTACT: VITA Customer Care Center at (866) 637-8482 or vccc@vita.virginia.gov


Note: All VDSS local agencies, state offices and home office are affected.

State agencies known to be affected are: ABC, DBHDS, DCJS, DCR, DEQ, DFP, DGS, DHP, DJJ, DMV, DPB, DOF, DPOR, DSS, GOV, NG, SBE, SCB, TAX, VDACS, VDEM, VDH, VDOT, VEC, VITA and VRC.

The technical staff at CESC continue work efforts to bring servers online as well as explore best options to restore application databases. At this time, VDSS servers and applications outside of IBM APECS, the intranet / SPARK and selected public websites cannot be accessed and remain unavailable.

If the status changes this evening an update will be posted. Thank you.
Reply With Quote Quick reply to this message
 
Old 09-01-2010, 02:30 PM
 
30,399 posts, read 18,705,309 times
Reputation: 14864
Quote:
Originally Posted by newhandle View Post
An excellent example is the Commonwealth of Virginia's privatization of its computer systems for all state agencies. By outsourcing to Northrup Grumman, the goal was uniformity, costs savings by buying bulk and modernization. All parties agree that the only thing it has accomplished is that costs has gone up and efficiency has gone down and the Commonwealth's citizens are left holding the bag and paying more. (While NG makes political contributions all over the place.) Finger pointing is rampant and the agency that has to monitor the program, VITA says in its reports to the General Assembly it does not have adequate staff for oversight.

Overbilling, double billing, incomplete services, missed deadlines, purchases of inferior products and major computer security breeches are the result (system has been hacked into and the cable sending the backup data to Lebanon for disaster recovery was cut; the proposal for two backup cables was rejected by NG for being too expenisve). In the end, NG is looking at no profit, the Commonwealth is paying more. It is such a failure that NG has abandoned hope of gettting all local governments to participate and independent agencies that not part of the executive branch refuse to particpate.

The problem is when a private company takes over, they are only concerned about profit, while state employees recognize their loyality is to the citizens.
There is a balance and it just depends.

For many construction projects the burden of cost overruns fall upon the private company and they have to be efficient as they can't just push the cost onto the public.

Want some examples?

-Boston tunnel massive cost over-runs.
-The Seawolf submarine program
-Osprey plane program
-Human Genome project, completed by private group that started after the govt. and finished in 1/2 the time for a fraction of the cost.

What is a city needs a new well dug? They can buy all the equipment, hire people etc etc. OR they can get numerous competing bids. It's just common sense that some functions are best farmed out to private companies with the expertise and specialization....and that bear the risk of cost over-runs etc.

Now, some things just can't or shouldn't be farmed out to private enterprise.

I'm leery of anyone espousing ONE RIGHT ANSWER on this topic.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $84,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Great Debates
Similar Threads

All times are GMT -6.

2005-2014, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 - Top