State accuses Northrop Grumman of obstructing IT transition to run up costs
Virginia officials say the state would have faced “open-ended” information technology costs under a mediated settlement agreement with Northrop Grumman Systems Corp. that Gov. Terry McAuliffe refused to sign in early April.
The “memorandum of agreement” had been reached in late January after two extensive days of mediated negotiation between the McLean-based company and state IT officials, including Secretary of Technology Karen R. Jackson.
But McAuliffe refused to approve the agreement because of its cost to the state, which contends it should not have to pay additional public money to Northrop Grumman to perform work the company already is obligated to do under a 13-year contract worth more than $2 billion that is unraveling as its expiration approaches in two years.
McAuliffe spokesman Brian Coy would not say exactly how much the deal would have cost the state to carry out, but he said the governor rejected it in early spring because “the thing was too expensive and it was structured in a way that was unacceptable to him.”
Read more: http://www.richmond.com/news/virginia/government-politics/general-assembly/state-accuses-northrop-grumman-of-obstructing-it-transition-to-run/article_6f2ba91a-fa41-584a-bcdd-7ccc8ee1d71d.html
