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Sunday April 20, 2014

Contractor Involved in CityTime Case to Pay NY Over $500 Million

Image representing SAIC as depicted in CrunchBase

Image via CrunchBase

Today federal authorities announced that Science Applications International Corp. (SAIC), the main contractor that had been working with NY on its ill fated automated payroll system CityTime, has agreed to pay over $500 million to close a federal investigation into the scandal surrounding the firm and the project.According to City Room, SAIC will pay the city $370 million and an additional penalty of $130 million, as prosecutor stold a Federal District Court in Manhattan this morning that the government “had entered into a deferred prosecution agreement with the company.”

Originally mean to streamline employee timekeeping for city workers, the project instead lead to, as City Room puts it, “a major embarrassment for the Bloomberg administration, as lengthy delays and giant cost overruns led to a federal investigation.”

City Room (NYTimes.com)