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NY Pays 230 “Consultants” $722M For Project 7 Years Behind Schedule

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Re: NY Pays 230 “Consultants” $722M For Project 7 Years Behind Schedule

#2
Hmm... sounds like an opportunity.

Juan Gonzalez says this is happening all around the country with cities and states converting to digital systems.

The consultants are being paid $400,000 a year. Nice. Because it is a capital expenditure no one knew what these people were being paid so you have to dig into the city records.

For what?

Basically a digital payroll and time-keeping system with features such as "biometric hand scanners to avoid city workers punching in for other workers" and digital timecards.

Anyone up for going after cities and governments who are doing this or looking to do this? It's taken 7 years in New York at a cost of almost $1 billion, I say we can do it for... oh, I don't know, 1% of that and in 1/7th the time?

Re: NY Pays 230 “Consultants” $722M For Project 7 Years Behind Schedule

#4
Both of my in-laws work for the USDA and they have been complaining for quite a while about a new system that was also way behind schedule and really didn't solve the needs of the department anyway. It's a typical case of "gather some requirements, go off into a black whole and build it for a few years, than come back and act surprised when it isn't relavent anymore and half the features don't even work." There are a lot of companies out there making a lot of money for doing a really bad job, waste is everywhere, and unfortunately I'm not getting any of it :-)

Re: NY Pays 230 “Consultants” $722M For Project 7 Years Behind Schedule

#6

Hmm... sounds like an opportunity. Juan Gonzalez says this is happening all around the country with cities and states converting to digital systems. The consultants are being paid $400,000 a year. Nice. Because it is a capital expenditure no one knew what these people were being paid so you have to dig into the city records. For what? Basically a digital payroll and time-keeping system with features such as "biometri…

[deleted]

Re: NY Pays 230 “Consultants” $722M For Project 7 Years Behind Schedule

#7

Hmm... sounds like an opportunity. Juan Gonzalez says this is happening all around the country with cities and states converting to digital systems. The consultants are being paid $400,000 a year. Nice. Because it is a capital expenditure no one knew what these people were being paid so you have to dig into the city records. For what? Basically a digital payroll and time-keeping system with features such as "biometri…

It is unfortunate this is happening. Be aware, however, that the solution is not just a technology solution it is probably also a business solution--dealing with various agencies of the city and their processes. I bet most money is spent on meetings and business process consultants... [Edit: not to say it cannot be done cheaper, but may not be trivial.]

Re: NY Pays 230 “Consultants” $722M For Project 7 Years Behind Schedule

#8

Hmm... sounds like an opportunity. Juan Gonzalez says this is happening all around the country with cities and states converting to digital systems. The consultants are being paid $400,000 a year. Nice. Because it is a capital expenditure no one knew what these people were being paid so you have to dig into the city records. For what? Basically a digital payroll and time-keeping system with features such as "biometri…

The $400,000 dollars per year isn't all going to product development. $350,000 of it is to compensate the consultants for navigating the nightmarish government bidding process laced with procedural road blocks to newcomers, cronyism and incompetence. Been there and done that, would not do business with again.

I used to put together proposals for a huge general contractor as a marketing assistant. The completed government proposals usually consisted of between 15 and 30 three inch ring binders of information. It would take me 20 minutes just to load it into FedEx via hand truck from my car. (This would be for something like a military barracks, I'm not talking about skyscrapers or stadiums. Not to mention that it wasn't uncommon to have several rounds of RFP's.) Contrast that with a civilian proposal that would be two or three binders. Software is not construction, but I'm willing to bet the process of bidding is similar.

In other words, it's a fat payday if you can stomach the process, but few can. This is also doubly sinister in that it's a process that is going to be particularly distasteful to just the sort of person that would make a great developer; one who holds efficiency and ingenuity on high, etc... Which is exactly how you end up with terrible DMV sites and CIA, FBI and DHSA databases that are unsearchable, and won't talk to each other.

Addenda: I'm not trying to put people off. I just want to shed some light on exactly how much pain is here: A LOT. Maybe the game-changer isn't someone getting the contracts and doing great, but someone rejiggering the bidding process?

Re: NY Pays 230 “Consultants” $722M For Project 7 Years Behind Schedule

#9

Hmm... sounds like an opportunity. Juan Gonzalez says this is happening all around the country with cities and states converting to digital systems. The consultants are being paid $400,000 a year. Nice. Because it is a capital expenditure no one knew what these people were being paid so you have to dig into the city records. For what? Basically a digital payroll and time-keeping system with features such as "biometri…

I think you're wrong, and I don't think you can deliver on that promise. I had the opportunity to speak with someone in a similar sort of project in Canada who told me that one of the biggest costs involved in these sorts of projects are the legal expenses. Often times you have to clear all sorts of red tape that needs to be torn down. Lawyers aren't cheap, and laws will slow you down.

Another point to consider is that you're going to be building something that needs to last for many-many years and can take on new interfaces over the coming years (e.g. iPhones, web, portable devices, etc). You need to build something that is going to be durable, grow, and be maintainable for years to come. Along this point, you'll need to import, manage, and parse old data.

Did you forget the training costs for city employees and the programmers that will maintain these systems? How about documentation?

I know you're being flip and trying to make a point that the city is being milked (and they are), but there's a reason for this. These contractors are doing a difficult, high stress job with lots of visibility. Their compensation, though high, is understandable -- as are their delays.

Re: NY Pays 230 “Consultants” $722M For Project 7 Years Behind Schedule

#10
The city is paying some 230 "consultants" an average salary of $400,000 a year for a computer project that is seven years behind schedule and vastly over budget.

This is misleading. The figures in the article are based on the hourly rates charged by the contractor that employs these consultants, not their take home salaries.

This is noted only later in the article:

The actual amounts individual SAIC employees took home are most likely lower than their stated rates, since computer firms typically take a cut of each consultant's charges. Nonetheless, these are breathtaking numbers.

This too is misleading because it suggests that the hourly rate is comparable to the individuals' salaries except for a "cut". In reality, this "cut" is likely 50 percent or more. 60-70% would not be unusual.

This is typical of newspaper coverage of "scandalous" IT contractor pay. The project may indeed be a disaster, but those consultants are not making nearly the money that the article suggests.

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