County Gives Tech Contractor the Boot

The county quietly ended a long headache Thursday night by firing Applications Software Technology Corporation, the vendor responsible for installing the county’s beleaguered Enterprise Resource Planning software upgrade.

Loudoun supervisors in November of 2011 approved a contract up to $21.1 million to implement Oracle eBusiness Suite, a set of programs meant to handle everything from payroll to mass appraisals to tax billing across both the county and public schools. The programs are collectively known as Enterprise Resource Planning software, or the ERP system.

The county has since poured millions more into the project, but supervisors have maintained it’s a painful necessity. The previous suite of software is more than 20 years old.

But the third and final phase has failed to meet deadline after deadline, and the county has held AST to be in breach of its contract since November.

Under the settlement agreement, AST will reimburse the county all of its implementation fees, $3,850,534.30, plus half of the cost of a consultation with Oracle which found the software built so far had “overly complex and unnecessary configurations.” The county also will not pay nearly $1 million that was to be withheld until the project was completed. AST must also offer 500 hours of free consulting to the county and its new contractor, Oracle, on the work it has done so far.

The total refund to the county, just under $5 million, is over 90 percent of the $5,456,948 the county has paid to AST during its failed implementation of the last phase of the project.

The county has contracted with Oracle to finish implementation. The refund to the county will cover about half that cost, $9,389,468. Overall, between the AST refund and the money left in the project fund, county staff estimates the project will now need an additional $3.8 million. With contingency funding, the board transferred another $4.8 million into the project from the fiscal year 2016 general fund balance.

Related: Troubled ERP Upgrade Gets $2M More

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