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Crime Your Rights Online

SAIC Settles CityTime Case For $500.4 Million 51

Posted by samzenpus
from the show-me-the-money dept.
First time accepted submitter arnott writes "Science Applications International Corp. said that it will pay $500.4 million in restitution and penalties under a settlement over its CityTime program with New York City. From the article: 'Two former SAIC employees have been charged with conspiring to defraud New York, and New York Mayor Michael R. Bloomberg (I) has called on the company to reimburse the city for the more than $600 million it spent on the program over an 11-year period.'"
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SAIC Settles CityTime Case For $500.4 Million

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  • by Anonymous Coward

    having had experience with SAIC in the past - one wonders how they remain in business when most of the projects turn out to be crap and have to be redone?

    • by fuzzyfuzzyfungus (1223518) on Friday March 16, 2012 @06:22AM (#39375489) Journal
      SAIC is a highly evolved obligate parasite of government.

      As with many highly evolved parasites, many capabilities are either vestigial or entirely absent; but the apparatus used to find, latch on to, and suck nutrients from, the host has been optimized to an impressive degree.
      • by Anonymous Coward

        You make one major mistake. SAIC is a Small Array of Independent Companies, which sometimes bid against each other. This causes great confusion for everyone involved. There are reasonable companies inside SAIC, and parasites inside SAIC. However, to characterize SAIC as anyhting other than a C-corp, falsely assumes a monolithic organization.

    • They hosted nice free user group on GUI design in their building 12 years ago.

      Other than that it's a very big corporation with links to the military industrial complex.

    • by Doc Ruby (173196)

      SAIC is a CIA asset [google.com].

    • by Joce640k (829181)

      having had experience with SAIC in the past - one wonders how they remain in business

      Simple: Wining and dining of the government officials with the cheque books.

    • Re: (Score:3, Informative)

      by Anonymous Coward

      This is an idiotic sweeping generalization. You had trouble on one contract therefore the 45,000 employees must all be useless and their billions in projects all have to be redone. Give me a break. There have been tremendous successes from literally genius minds in the company providing tech to the government not seen anywhere on the planet. I know, because I was there.

      I worked for SAIC for 15 years. As they went public, the the management sold the soul of the company to centralize like the other huge

      • by Anonymous Coward

        I was there when before they went public, and they were already sleaze-balls.

        Unfortunately I didn't see anything that I was certain was illegal or dishonest, but they sure as hell knew where the line was and danced on it.

  • by Doc Ruby (173196) on Friday March 16, 2012 @07:08AM (#39375671) Homepage Journal

    I live and work in NYC. The Washington Post might love kissing billionaire technocrat ass, but Bloomberg didn't get this money back. In fact Bloomberg is responsible for letting SAIC rob over $600M on this contract, all the way until the bitter end while Bloomberg defended SAIC and its "cost overruns". As he finally admitted last Summer [nydailynews.com]. It's the Federal prosecutor, Manhatttan US Attorney Preet Bharara, who clawed back this money. Though indeed even Bharara couldn't get it all back [nypost.com]: the ripoff claimed $652M, the court awarded $540M, and the city might get from $466-518M. Meanwhile Bloomberg whined that getting the $500M wasn't done "in a more pleasant way". (FWIW, when his bankster cops were macing women on public sidewalks last Summer, he had no complaint that it couldn't be done in a more pleasant way). Bloomberg says we now have a functioning system "at a very reasonable cost", because he's not including all the costs of recovering the money in court. He defended this ripoff until the bitter end, and continues to spin it.

    • I was wondering about that. It really seemed inconsistent for Bloomberg to be a campaigner against companies defrauding the government.
    • by sgt_doom (655561)
      Exactly and thanks for your commentary. Fact is, Bloomberg is the same stooge who appointed former GE CEO, Jack Welch, to aid in the privatization of the NYC school system. And if SAIC screwed up their last two contracts, one at NSA, then another at the FBI, spending all their time just copying all their files, instead of what they were supposed to be doing, it begs the question as to what they were really doing with respect to NYC?????
  • by zill (1690130) on Friday March 16, 2012 @07:24AM (#39375759)
    From reuters: [thomsonreuters.com]

    Critics say city employees could have done the work far less expensively. Bills spiraled out of control over the years, hitting $692 million, and city investigators brought federal prosecutors into the probe after uncovering payments routed through shell companies.

    ... SAIC agreed to pay $370.4 million in restitution to the city, as well as a penalty of $130 million, according to a deferred prosecution agreement made public on Wednesday. The city will get $96 million of the penalty, with the rest going to the federal government.

    In addition, New York City will not have to pay about $40 million of the bills it was charged.

    Let me see if I got this right:
    -$692 million in bills +$40 million in canceled bills + $370.4 million in restitution + $(130-96) million in penalty payments = -$247.6 million

    Shouldn't the restitution payment at least cover how much NYC originally paid?

    • by Anonymous Coward

      The city was being overcharged, that doesn't mean the legitimate charges become free labor.

      • by zill (1690130)
        My bad. I didn't realize the city actually received what they ordered. I mistakenly thought SAIC failed to delivered the software.
        • by Anonymous Coward

          Yes, the system was actually installed to prevent fraud by city employees that were having their buddies clock them in (while they presumably sip tea in the Hamptons). Biometrics are now required when clocking in/out which has saved NYC millions (and probably has a bunch of union types pissed!)

          Unfortunately, it appears the team that installed the system was also stealing from the project in some convoluted fashion and now SAIC is paying the price financially along with some bloodletting within the company.

    • by CByrd17 (987455)
      They also got a working system that they are using today. Maybe you think they should get that for free, but you already mention the restitution, penalty, and debt cancellation.
  • by MikeRT (947531) on Friday March 16, 2012 @07:51AM (#39375935) Homepage

    Is that given their federal track record, why would NYC give them something like this? Their prior performance at the federal level looks like the killing fields of Cambodia done on a bank statement. They're an institutional argument of why cost alone should never be a factor in awarding a contract; bang-for-the-buck instead because the feds have almost without fail gotten exactly what they've paid for from this company.

    • I don't think they are any worse then any other federal contractor. The entire defense industry is quite adroit at extracting funds from the govt. SAIC doesn't hold a candle to some other large entities in this regard. This incident was lack of oversight, but the fault lies with 2 corrupt employees. Individual criminal acts, not corporate malfeasance. That said, the entire parasitic industry needs to be severely limited for the benefit of the country. Value versus spending is way out of whack and the taxpay
    • by Anonymous Coward

      Having worked for SAIC and commercial companies (Microsoft, Qualcomm), I am not surprised in the slightest. Their management was entirely concerned with extracting the most cash from the government possible, with little or no regard for the actual work that was done. Engineers were regarded as unfortunate necessities to actually appear to perform some kind of work, while Sr VP's, VP's, and Associate VP's pontificated, and postured. Huge subcontracts were cut to people with questionable skills and dubious

    • by elrous0 (869638) *

      Charismatic salesmen and well-funded lobbyists can work miracles.

  • by Anonymous Coward

    As someone who coded on the this project, (too low level to know about any theft or graft), I would say the city has gotten a real bargin. The big problem on the project is that the city is very complex and city workers are very poor at communicating that complexity into requirements. SAIC wasn't the first company to work on the project, a bunch of money was spent on the first few companies that did the work. The city had widely underestimated what it would take to make the product work, and how much the un

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