Portland’s New $14.2 Million Software System to Cost Taxpayers $47.4 Million

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A software system project that began in 2006 with an approved “high” budget of $14.2 million now is estimated to come in at $47.4 million. The popular SAP software system, used by businesses worldwide, was botched by city employees and outside contractors and came online 16 months later that scheduled, while lacking key features as originally promised. The faulty installation also now requires that the city maintain a secondary software system.

Ariston Consulting & Technologies was hired by the city to implement the system, but the contractor was fired by the city in 2008. The city paid the company a fee of $1.8 million despite the city’s position that they had mismanaged the job.

The new system is currently up and running but lacks key components that were designed to be part of the system, including reports necessary for financial statement preparation, and human resource and payroll functions.

The Oregonian

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