ContractsProf Blog

Editor: D. A. Jeremy Telman
Valparaiso Univ. Law School

A Member of the Law Professor Blogs Network

Monday, December 2, 2013

California Controller Sues SAP for Failed Payroll System

CA State SealAccording to this report from the Courthouse News Service, California Controller John Chiang is suing SAP Public Services (SAP), a company with which the state of California had contracted for payroll services software (MyCalPAYS) that would assist California in managing payments to its 240,000 employees.  After three years of development and eight months of trials, California alleges that SAP still has not managed to get the system to work.

The system was projected to cost California taxpayers just over $100 million, but by the time it was cancelled, it had cost $260 million and never worked right, according to the state.  The state claims that MyCalPAYS was tried out on a test goup, and the results were disastrous: overpayments, underpayments, failures to report deposits in retirement accounts, childcare payments and medical contributions.  Although the state complained before declaring SAP to be in default, SAP contended that the system was working as designed.  

As Courthouse News Service reports, California encounered similar problems when it contracted with software developer Deloitte to manage its statewide judicial case management system.  

California, Kathleen Sebelius feels your pain.  

[JT]

http://lawprofessors.typepad.com/contractsprof_blog/2013/12/california-controller-sues-sap-for-failed-payroll-system.html

Government Contracting, In the News | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef019b01f8c91a970c

Listed below are links to weblogs that reference California Controller Sues SAP for Failed Payroll System:

Comments

Post a comment