Analysis & Commentary:

ORACLE DEAL MAY BREAK CALIFORNIA'S IT DEPARTMENT

As reported by Marc L. Songini, California's Department of Information Technology (DOIT) may be eliminated as a result of its role in signing a massive exclusive contract to buy database software from Oracle.

The DOIT, formed in 1995, has oversight responsibility for the state of California's IT planning and development. Along with the Department of General Services, the DOIT was instrumental in securing a six-year, $120 million enterprise licensing agreement with Oracle, which brought a firestorm of criticism from lawmakers over possible violations of single-sourcing law. California state auditor Elaine M. Howle called the agreement for Oracle8i databases "a largely one-sided contract" that could cost more money than standard software licenses would have.

Last week, one of the department's defenders, San Jose Assemblyman Manny Diaz, decided not to reauthorize funding for the DOIT.

In a press release issued by his office, Diaz said: "Before the Oracle audit, I was willing to support a partial extension of DOIT to December 31, 2003 to improve its overall performance. However, its blatant lack of oversight in the Oracle contract proved to me that DOIT cannot do its primary responsibility of protecting taxpayer's money in major IT investments. It is time for the administration to re-evaluate what type of entity should be held accountable for the state's overall IT plan."

"As far as DOIT is concerned, it ceases to exist on July 1," said a Diaz spokeswoman, who said Diaz had amended a previous bill to continue the DOIT. Diaz's original legislation would have extended the DOIT's sunset date through December 2003 while allowing the department to help set statewide policies and standards for procurement.

The DOIT has 69 employees, mostly IT professionals, said a department spokesman. The DOIT maintains that it still has a purpose in helping the state save money in IT procurement, he said.