State agency apologizes for wasting $700,000 on bad software
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CAMP MURRAY, Wash. --The state's Emergency Management Division is apologizing after wasting $700,000 on a new software program to manage 911 finances. The software never worked and the state ultimately dumped it.
"We see that as a failure, a failure to our customers," said Communications Director Rick Patterson.
Normally, when we think of the state's Emergency Management Division -EMD - we think their responsibilities to guide the area through natural disasters or severe storm emergencies. But the EMD also controls state and federal money that gets doled out to 911 operations around the state -- about $28-million worth.
About four years ago, the EMD wanted to start managing that financial program digitally, buying a brand new technology program.
"Our goal was to save money, and to save staff time," Patterson said.
Instead the results were disastrous.
The technology software program the state bought wound up costing $709,000 -- including staff time -- and ultimately would have cost the state even more in the long run. Two investigations - one internal, one external - found fault with management and oversight. They also found there was no competitive bid process -- they actually piggy-backed on an existing contract with another state agency.
Patterson says the department clearly made mistakes.
"We're managing taxpayer's dollars and we need to be good stewards, and so the first thing we wanted to look at is how we could do a better job of managing those dollars," he said.
Two managers have since been moved out, and a third is subject to an ethics investigation.
"And we're going to do everything possible to ensure that never happens again," Patterson said. "That's just not acceptable."
Emergency management says they will never go without the competitive bid process again, and now the enhanced 911 program is under the direct supervision of the main office.
"We see that as a failure, a failure to our customers," said Communications Director Rick Patterson.
Normally, when we think of the state's Emergency Management Division -EMD - we think their responsibilities to guide the area through natural disasters or severe storm emergencies. But the EMD also controls state and federal money that gets doled out to 911 operations around the state -- about $28-million worth.
About four years ago, the EMD wanted to start managing that financial program digitally, buying a brand new technology program.
"Our goal was to save money, and to save staff time," Patterson said.
Instead the results were disastrous.
The technology software program the state bought wound up costing $709,000 -- including staff time -- and ultimately would have cost the state even more in the long run. Two investigations - one internal, one external - found fault with management and oversight. They also found there was no competitive bid process -- they actually piggy-backed on an existing contract with another state agency.
Patterson says the department clearly made mistakes.
"We're managing taxpayer's dollars and we need to be good stewards, and so the first thing we wanted to look at is how we could do a better job of managing those dollars," he said.
Two managers have since been moved out, and a third is subject to an ethics investigation.
"And we're going to do everything possible to ensure that never happens again," Patterson said. "That's just not acceptable."
Emergency management says they will never go without the competitive bid process again, and now the enhanced 911 program is under the direct supervision of the main office.
SAS needs to refund that money - never mind the shady business arrangements, or the procedural circumvention, the simple fact is that they didn't do the job.
 @FormlessOne I agree.  If they delivered an unusable product, they should provide a refund.
What a bunch of whiners! Seriously. There is no business, organization, or sports team that is without error. We all make mistakes. Both private enterprises and government agencies make mistakes. It's part of growing, learning and improving. But instead of supporting those that work for us and accepting the apology in good faith and moving on, what we have here in this forum is a lynch mob, ready to stone to death any government agency that wastes a penny.
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I think as a society we need to be less litigious, more forgiving, and certainly more clear headed and objective in our criticisms. The constitution itself says to "strive for a more perfect union". There is no such thing as perfection; all we can do is work towards it.
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I'm sure many here will say how private enterprise would do it better, but that's not always the case. And in any event, if you fire and humiliate employees for every error and shortcoming, you'll have no employees. And if you let the lynch mob run the show then nobody will ever work for the government, because it's only a matter of time before you would have a noose around your neck.
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If we want to fix inefficiencies in government, I'm sure there are bigger fish to fry.
 @Bellevue Scott Welcome to the internet Bellevue Scott, this must be your first time visiting.Â
Apologize???????? How about those who were responsible for the purchase pay the money back to the state/people via their salaries.Â
These idiots can't even manage money, when purchasing software to manage money.
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If anyone's listening I have a version of Quickbooks 2.0 I'm willing to let go.
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$650,000.00 OBO
Amazing
two managers have since been moved out, and a third is subject to an ethics investigation.
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And how come they were not FIRED??
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Make them pay the money back then fire them!
So just how much money will the state get back from this bad software? will they even try? the states moto is "it's not our money so why not blow it".
Government "musical chairs".  When was the last time you heard of anybody fired for incompetence in state government?Â
So whose heads will roll? Sure they're "sorry" but that doesn't get the money back. Our money.
KOMO - could you at least tell us the name of the software or the company that produced it? And, if the contract was "piggy-backed" off an existing contract, which other state agency is using this company?
 @StormWx There was a huge article in the Tacoma New Tribune about this boondoggle and it did name the company, the software and identified the people involved. Including one state official who apparently wound up sleeping with one of the software company's managers....
Yadda yadda yadda how heartwarming.I just feel so warm and fuzzy because they are sorry for pissing away this money. They are sorry because there is no way they can cover it up. An ethics violation and some managers have been relocated.I wonder how many are on paid administratve leave during the holidays and into the next the year? Folks, wait til this pontoon thing plays out. Man, I'm not going there now. It is early and I'm going to have some cornflakes and blueberries.
Bla, bla, bla. How nice they are âso sorryâ, as they sit in their office and laugh. Of course no one will get fired for being incompetent. After all itâs just tax payer money, no end to it all. Here you go voters, enjoy what you asked for. Â
This is the norm anymore. Our govt and the offices supported by it are a joke.
Job interview:Salary Requirements: $75K/yr plus benefits (10 years experence)
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Employer:Â Why should I hire you when I can get someone with the same qualifications for 40K Per year.
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Me: See story above.Notes: Qualifications of other candidate : just got his MCSE, aka Paper MCSE
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The interview was about 10 years ago, I left IT. I saw this coming when it first hit the papers. I also saw the Tacoma mess coming as well. The one reason I was never a manager, I could not be that stupid.
The state should have received a guarantee from the software vendor that their product would actually work in the application. When it didn't and the vendor couldn't make it work to specifications (there WERE specifications, weren't there?) the state should have sued the vendor for breach of contract.
My guess is that they 'saved money' by doing away with the specs - or simply used the specs from the 'other agency'. The fact that they 'piggybacked on an existing contract with another agency' tells me that they simply admended that contact (accepting most of the specifications) - possibly with no 'guarantee' of performance.
On the bright side -- this is the first time I can remember a state agency actually admitting they were wrong and apologizing for it.
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I know what I could do with $700,000 and it'd all be put to good use, THE FIRST TIME!!
An apology and having $700,000 taken out of your next budget is better than just an apology. Â
Oh well, it's just $700,000. Nothing whatsoever like the $4,000,000,000 that Paula Hammond is wasting on those enclosed concrete pontoon swimming pools.
Thank god we have Inslee guarding the henhouse now.
 @thatsjarrod God has nothing to do with any of it.
Government doing what it does best...Â
To me, it sounds like :P instead of an apology...
An apology? Now that makes me fell lots better about my $700.000 of tax money going into the drain!
 @WhatdidIsay? Well, to be factual it is more like nine cents of your money (and nine cents from every other Washington resident) that went down the drain.
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Still sucks big time.
As a web developer, I really think organizations and companies should go back to in-house development. Â Many, many times, I see companies adapting to the software that was supposed to adapt to them. Â These systems take away those company's core advantages, synergies, and efficiencies. Â I've worked with PM's of Great Plains, and they kept telling my company, "no, that cannot be changed, nor that, and that... Â It's all source code". Â That is just BS. Â Server-side and client side coding is so easy and inexpensive today, in-house development shouldn't be out of the question. Â I understand that government organizations and public company's have to succumb to regulations and laws like SOx, but still these issues can be maintained. Â In all, it sounds like another cost-overrun, poorly managed software deliverable...Â
 @31F Insourcing certainly seems to be the trend these days.  Even if off the shelf software does 90% of the job, it's the 10% that it can't do that's going to bite you.
It's ok, we forgive you
 @Harrison Well, an apology instead of an "excuse" IS pretty unusual...
I'm a systems engineer, have been in IT for 12 years now. It is standard procedure to solicit bids from vendors and set up lab environments to test RFP ideas. After a vendor is selected for the final proof of concept, it is rolled out to pre-production, or "dogfood" to specific users or groups. I guess the state doesnt know this though. If they did, they could have saved quite a bit of money
@northwestsurfer Also note that two of the managers for this have been 'moved out'. I take that to mean they have not been FIRED or even 'asked to resign' as they should have been - but were simply moved elsewhere to make yet another mess. (any bets on them being moved to an even higher position?)
Also as the story states they simply piggybacked on an existing contract from 'another agency' (very stupid move for software). This is like trying to wear your younger, much smaller, brother's (or sister's) shirt and finding out too late that its much too small (rip!). Who made *that* decision and why haven't they been fired? Lets have some names!
That's the problem with Government - it has a captive customer base (what are they going to do - go elsewhere?) and simply doesn't have to care about 'quality' or 'cost'. Ooopsie! We blew another $700,000! Better apologize and 'move out'. "We don't care! We don't have to! We're the GOVERNMENT!".
 @northwestsurfer That is the problem with our government agencies.... lots of people that are in positions they shouldn't be in.  Their apology should be the removal of those that approved the spending without appropriate testing.
$700k is the equivalent of about 7 staff, not even at high salary levels, in the programming marketplace. I've been involved in equivalent failed projects that never saw implementation due to a collaborator not delivering on their end, at a somewhat lower salary level. But many programmers make over $100k.
@Irmtraut That's what I was wondering--if it was a "roll your own" solution. Investing in an accounting platform from the likes of SAP or IBM would rack up those sorts of figures quite easily, too.
 @Irmtraut This is true. $700k is a drop in the bucket. I work in IT for a pseudo-government group now and am on a project that will likely never see the light of day and will be lots more than this. I'm new there and when I point out why things take so long and are so expensive, all I'm told is "you don't understand the culture here". Every decision takes weeks, lots of meetings and opinions of every possible person, and even then are rarely actually made.
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 @newdragon  @marvin I left a decent job with government (and possibility for promotion) to work in private industry. Unfortunately the same culture is alive and well in the mega corporations.
In related news, Washington business apologizes for wasting money they earned that was supposed to go to paying State taxes.
"We see that as a failure, a failure to the taxpayers,"
"Our goal was to save money, and to save staff time,"
"And we're going to do everything possible to ensure that never happens again,"
So again we are sorry.
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Of course, only in Government can you waste hundreds of thousands of dollars with no accountability, and if you are in the private sector you would be fired, out of business or in jail.
Please report the name of the company and consultants that entered into the contract and please ban them from working for the State.
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No worries. Millions were wasted on the WSF "reservation" system. But not to worry they are planning to fix it by spending millions more....
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Here we have some of the largest software development companies in the world, and our elected officials couldn't even find/hire one of them as a consultant for a project of this magnitude? Why not at least find a contractor that had SUCCESSFULLY supplied a similar product to a similar agency?
 @RTNavy :)  Interesting idea!  But we are talking about Washington State government here.  Logic, reason, following procedures and planning are just so darn difficult!  It's easier to just, do whatever you want and say, "So sorry" if you get caught.  Slappywag is right, the people will forget it in a month (and the politicians know it), which is why they seem so show so much contempt for the people that pay their wages.. US!
Isnt it interesting that government agencies spend and de-fraud the people of this state and no one ever gets fired or has criminal charges brought against them?? Its always a slap on the wrist or they just talk thier way out of it. I guarantee if it was a normal person falsly spending thier so-called money, you would charged, fined and thrown in prison. But this is the government that the so-called majority voted for.Â
 @Busyhands I seriously doubt that any kind of fraud occurred unless it was on the part of the company that sold the defective software to a gullible state agency. I will state that no single person should ever have the authority to spend that kind of money without an ironclad guarantee that the product WILL perform as needed.
Yeah. Just go look at Belinda Stewart.
"Moved out." of personnel. Â What does the phrase mean? Transfer, termination or titillation? Â
Or promoted?
@George...... do you really need to ask? No one ever loses their government job.
 @FED__UP Not quite true, lower level employees (grunts) often lose their jobs but managers at any level are usually exempt. They may be reassigned or even promoted to move them out of the way, but rarely fired.