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Minneapolis Scrutinizes IT Services Contract

Minneapolis CIO reportedly is preparing to rebid long-running contract that outsources IT services.

by / August 6, 2012

Minneapolis officials are reportedly taking a hard look at the city's long-running contract that outsources IT services.

The local Star Tribune newspaper reported over the weekend that some  top city officials are questioning whether the $143 million paid to Unisys over the past 10 years is truly the best deal for taxpayers. A recent audit also found the contractor wasn't meeting some of the contract requirements. City auditors concluded the city wasn't getting discounted equipment and services, as required by the contract.

The pact was reported to be a "no-bid" contract.

The newspaper also reported on close business ties between former IT officials who worked for the city and then took jobs with the company.

Minneapolis CIO Otto Doll came to the job in 2011, after the Unisys contract had been extended. Doll, who for many years was South Dakota's CIO, enacted a review of the city's IT infrastructure and said he would pursue efficiencies where appropriate.

The Star Tribune reported Doll's staff is preparing to rebid the exiting IT services contract by summer 2014.

Neither Doll nor other officials quoted by the newspaper seemed to dispute the idea that IT outsourcing is saving Minneapolis money. The objections appear to center on the contracting process.

Government Technology reported in late 2010 on the latest extension of the Unisys contract, which added cloud email to exisiting PC provisioning, cybersecurity protection and a range of service-level agreements. Doll's predecessor said at the time that the contract extension would save the city $2.2 million.

For more detail, visit the Star Tribune online.

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