4A
THE DAILY ASTORIAN • TUESDAY, MARCH 31, 2015
IT: Total value of current, planned state computer system projects is nearly $1 billion
Continued from Page 1A
in February 2014 “as a direct
response to a major IT project
for Gov. Kate Brown, wrote that was ill-prepared to move
in an email that it was simply to its execution phase ...”
an “opportunity to consider
There are plenty of other
that DAS has a new interim high-stakes state IT projects
director, and whether or not underway and planned for
the agency response letter the future. The state is work-
QHHGHG WR UHÀHFW WKDW 8SRQ ing on several that are each
further consideration, it did worth at least $20 million,
not.” Naughton made only and the total value of current
a few minor word changes and planned state computer
before signing off on the re- system projects is nearly $1
sponse Jordan had written.
billion, according to auditors.
An independent IT ser- The projects include replac-
vices review that Brown ing many of the core appli-
called for last week will cations at the Department of
cover management issues in Revenue, and developing a
addition to security issues, new child support computer
Grainger wrote. Brown an- system for the Oregon De-
nounced her plan for the re- partment of Justice.
view in a press release last
The Department of Ad-
week acknowledging a data
breach at the DAS-managed
state data center.
Despite the audit’s focus
on IT project management,
it did not examine what au-
ditors described as “arguably
the worst computer develop-
ment failure in state history,”
Cover Oregon. Oregon spent
$300 million in federal mon-
ey primarily to set up an on-
line exchange for people to
purchase health insurance,
plus at least $26 million in
state money for related proj-
ects, The Associated Press re-
ported. The exchange website
failed to launch as planned in
October 2013. Meanwhile,
the state and technology
company Oracle American
,QF KDYH ¿OHG GXHOLQJ ODZ-
suits over the project.
Green wrote in an email
that this audit largely fol-
lowed up on problems iden-
WL¿HGLQSUHYLRXVDXGLWVDQG
“We have not audited Cover
Oregon because it is current-
ly being looked at by federal
agencies and a host of other
consultants for the state, in-
cluding those hired by the
*RYHUQRU¶V2I¿FH´
Jordan alluded to Cover
Oregon in his response to the
DXGLW ¿QGLQJV ZULWLQJ WKDW
the new IT project manage-
ment strategy was introduced
ministrative Ser-
the Secretary of
vices
directly
6WDWH¶VRI¿FHIRXQG
manages some of
in 2001 that DAS
these IT projects
had not written ad-
and assists differ-
equate guidelines
ent agencies on
for other agencies
others.
Auditors
to develop comput-
found DAS’ project
er systems, and in
management was
fact the agency had
³D VLJQL¿FDQW VWHS
mishandled one of
in the right direc-
its own major IT
Alex
tion,” but weak-
projects.
Pettit
nesses remained
State CIO Alex
across all state IT projects. Pettit started to develop a
For example, DAS did not new IT project management
assign enough staff to han- strategy in 2014, but it is still
dle project management, and not complete. For example,
the consequences for failing auditors found DAS has not
to meet project management \HWLGHQWL¿HGZKLFKVWDWHHP-
goals were unclear.
ployees are responsible for
The problems have long oversight of various aspects
been known. Auditors from of IT projects under this pro-
cess. Auditors attributed the
SUREOHP WR D VWDI¿QJ VKRUW-
age at DAS: the agency has
three to four analysts avail-
able at any time to “evaluate
multiple projects and provide
needed guidance to agen-
cies,” and they have little or
no time to work on the proj-
ect management strategy. In
2014, these analysts were re-
sponsible for oversight of 30
ongoing state IT projects and
gave conditional approval to
an additional 41 new state
agency projects.
“Given this workload,
WKLVOHYHORIVWDI¿QJLVLQVXI-
¿FLHQW WR HIIHFWLYHO\ GHYHO-
op and fully implement the
concepts associated with the
(project management) mod-
el,” auditors wrote.
Matt Shelby, a spokesman
for DAS, said the agency
was aware it needed more
employees to manage these
projects and that is why it
asked lawmakers for more
money to hire additional
staff. Shelby said Pettit also
worked with lawmakers to
draft House Bill 3099 to as-
sign more authority to the
FKLHILQIRUPDWLRQRI¿FHU7KH
bill is currently scheduled
for an April 2 hearing at the
House Committee On Con-
sumer Protection and Gov-
ernment Effectiveness.
The Capital Bureau is a
collaboration between EO
Media Group and Pamplin
Media Group.
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Continued from Page 1A
Marine Highway 5, named
for its proximity to Inter-
state 5.
Chen ran a similar idea
for a privately owned cool
container shipping terminal
by the Port of Longview,
Wash., about two years ago.
But Ashley Helenberg,
a port spokeswoman in
Longview, said the project
didn’t come to fruition, her
port waited for more infor-
mation it never got.
“We were going to cre-
ate a packing house there,”
Chen said. “But the prof-
it margin is very low, and
looking at what the long-
shoremen
wanted,
we
wouldn’t be able to make a
profit.”
Through Great Alaska
Capital Holdings LLC, cre-
ated in 2013, Chen’s float-
ed the idea for exporting
glacial drinking water with
local companies there such
as Alaska Glacier Products
to Asia. Chen said the proj-
ect’s still in planning, but
needs more permits, cold
containers and a quota on
the glacial drinking water
that can be exported.
As for the nonexistent
storage and shipping ap-
paratus, Chen said Great
Ocean has a partner in San
Antonio with cold storage,
and that Great Ocean is pur-
chasing barges, push boats
and ships for a shipping line
to be named Great Ocean
Tow and Barge Company.
Shipping products from
Chile to Astoria and then
onto Asia, Chen has said,
would halve the cost of
shipping them directly from
South America to Asia, and
shipping by barge costs less
in fuel and can relieve traf-
fic on the highways.
“We need a port to sup-
port the state’s exports, and
Astoria is in a perfect po-
sition,” Chen said, adding
that Oregon stands to lose
a lot of shipping business to
the Puget Sound region.
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