Cost Overruns for IT Projects Common in Orange County


The Voice of OC reports: “Seven years after Orange County first launched a task force to bring ‘cost savings’ and ‘transparency’ to its numerous computer contracts, supervisors and others remain frustrated with numerous no-bid contracts, cost overruns and inefficiencies that could be costing taxpayers millions in unnecessary expenses. … In the last three months alone, supervisors approved nine IT contract extensions and overruns – totaling $26 million – as well as four separate no-bid contracts, according to a Voice of OC review of staff reports and Board of Supervisors meeting minutes.”


The contract extensions included a $1.9 million increase for a tax assessment system, and an additional $1.1 million for Sheriff’s Department computer services.


Supervisor Janet Nguyen commented: “I have not seen an IT contract being reduced, in terms of cost. It has always increased.” (Source: Voice of OC, May 3.)

California Tax Foundation   |   1215 K Street, Sacramento, CA 95814   |   916.441.0490   |   foundation@caltax.org

© 2018 CALIFORNIA TAX FOUNDATION. ALL RIGHTS RESERVED.