January 10, 2009

State Said to Be Close to Dropping Police Radio Project
By KEN BELSON and AL BAKER
NY Times

http://www.nytimes.com/2009/01/10/nyregion/10contract.html?_r=1&ref=todayspaper&pagewanted=print


State officials are close to canceling a $2 billion contract to build a 
statewide wireless network for emergency agencies after critical tests 
on the network failed late last year, according to state officials 
briefed on the results.

Lawyers for the vendor, M/A-COM, a subsidiary of Tyco Electronics, sent 
the state a letter on Friday threatening to sue if officials follow 
through on their plan to shut down the project, which was intended to 
improve radio communications throughout the state, but particularly in 
remote areas where police agencies have trouble talking to one another.

State officials, though, were said to be determined to shut down the 
project because it was unclear, after a pilot program in two counties 
and nearly $52 million in expenditures, that M/A-COM’s system would ever 
work as expected. A major problem has been the difficulty and 
unanticipated cost of installing radio towers in remote, mountainous 
areas, according to the officials and technical experts, who spoke 
anonymously because the contract dispute is at a delicate juncture.

To finish the project, state officials decided that considerably more 
money would have to be spent at a time when the state is expected to 
have large budget deficits. At the same time, the state cannot embark on 
a new network project, no matter what the cost, until it untangles 
itself from its current contract, one state official said.

“The state is reviewing the letter from the attorneys for M/A-COM,” said 
Morgan Hook, a spokesman for Gov. David A. Paterson. “We anticipate 
making a decision in short order that will be based on our factual 
analysis of the system’s performance.”

Lawyers from Weil, Gotshal & Manges, the firm representing M/A-COM, said 
in their letter that it was “patently obvious” that the state was 
determined to cancel the contract because of political and financial 
pressure and was using technical issues as a pretext for the cancellation.

The State Office for Technology, which has overseen the network’s 
construction since 2005, “has acted in bad faith throughout the past 
year” and has made “defamatory and untrue statements regarding M/A-COM’s 
performance under the contract,” the letter said.

The largest technology contract in state history, the network has had 
problems from the start, according to state officials. In August, the 
state sent a default letter to M/A-COM ordering it to fix deficiencies 
or face cancellation. A decision to cancel the project has seemed 
imminent since then, and some state officials, and lawyers for the 
contractor, have spoken of it as a fait accompli.

The original plan, conceived after the attacks of Sept. 11, 2001, was 
designed to link emergency agencies from the tip of Long Island to 
Niagara Falls via a series of radio towers. The network was meant to 
cover 95 percent of New York’s area and 97 percent of its roadways, 
including some of the most remote parts of the state.

The Office for Technology is looking at other methods, including 
Internet-based communications and cellphone technology, that are said to 
be more cost-effective and could provide more reliable and cheaper 
service than the radio technology called for in the original contract.

Daniel M. De Federicis, the president of the Police Benevolent 
Association of the New York State Troopers, said that until a statewide 
radio network has been built, his organization would push for 
improvements in the present patchwork of networks.

“The lack of an operating statewide wireless network is beyond 
frustrating,” Mr. De Federicis said in a statement. “The P.B.A. cannot 
stress enough that this creates life-and-death situations for police 
officers, and we are running out of synonyms for ‘ineptness’ to describe 
the situation.”

The project, which is now two years behind schedule, has faced questions 
from the outset. Critics questioned the Pataki administration’s decision 
to award the contract to M/A-COM, whose bid was $1 billion less than its 
closest major competitor, Motorola.

The radio system was supposed to be working in Erie County and 
neighboring Chautauqua County by June 2007, but repeated problems caused 
the City of Buffalo to quit the statewide system in December 2007.

M/A-COM missed other operational deadlines, finally prompting the Office 
for Technology to declare in August that the company was in default. The 
office gave the company 45 days to fix 19 deficiencies.

In their letter Friday, lawyers for the company said that all 
technological issues had been addressed and that any delays were the 
fault of the state.

During an 11-day test period in July, the network was found to be 
inoperable for nearly 44 hours, far more than the 53 minutes of downtime 
per year authorized by the state.

Since the state default letter was issued in August, some workers hired 
to build the network have been laid off, and several subcontractors have 
stopped work on the network.

In late August, the state comptroller, Thomas P. DiNapoli, issued a 
report criticizing the plan. The report noted that the “network testing 
was not properly planned or implemented, and the needs of the public 
safety user agencies were not fully taken into account during the 
network design and development process.”

Separately, M/A-COM agreed to pay the state $4 million after auditors 
found that the company had billed for services that had not been 
provided and charged for some equipment that had already been paid for.

A spokesman for M/A-COM, Steven A. Greenberg, said on Friday, “We remain 
ready to hear from the state, as we have since testing concluded last fall.”

-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204 
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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