SAIC told to repay NYC more than $600M, news agency reports

Mayor's demand seeks repayment of problem-plagued CityTime project

Science Applications International Corp. apparently has run afoul of New York’s powerful mayor, Michael Bloomberg.

Bloomberg is demanding that SAIC reimburse the city more than $600 million it paid the contractor in connection with the CityTime software project, a long running effort to overhaul the city's payroll system, online Network World reports.

"The city relied on the integrity of SAIC as one of the nation's leading technology application companies to execute the CityTime project within a reasonable amount of time and within budget given the system's size and complexity," Bloomberg is quoted as saying in a June 27 letter to SAIC CEO Walter Havenstein.

Two former SAIC employees on the CityTime project have been indicted and two employees of subcontractor TechnoDyne have fled to their native India, charged in a $450 million fraud indictment.

SAIC, of McLean, Va., ranks No. 6 on Washington Technology’s 2011 Top 100 list of the largest federal government contractors.

Reader Comments

Wed, Jul 6, 2011 Jackson

Why this lead? The company has not (just) "run afoul" of the mayor. Rather, on the surface, it appears like there have been massive performance problems. An acceptably functional system has not been delivered, and it is late and over-run, and some of the company's team appear to merit criminal prosecution. A proper headline and lead would refer to formal accusations of grave nonperformance and alleged criminal activity.

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