New York CIty Council Member Ben Kallos

Gotham Gazette Taxpayers Fleeced for Nearly $47 Million in Tech Boondoggle But Few City Leaders Notice by Scott Peterson

Taxpayers Fleeced for Nearly $47 Million in Tech Boondoggle But Few City Leaders Notice

What if I told you that in an effort to enable 40 New York City government agencies to buy goods and services more cost-effectively, some city officials have put on a tutorial on how not to buy goods and services – and stuck taxpayers with a bill heading toward $47 million? 

As a New Yorker, you’d probably tell me to “Get the hell outta here!” -- then I’d have to give you details.

So here’s how the flimflam went down. Three years ago, city government hired an inexperienced French technology company, Ivalua, to custom-build procurement software for tens of millions of dollars ($30.5 million, to be more precise) to help the city agencies buy goods and services less expensively.

The company’s partner in landing the contract was KPMG, a global professional services firm with deep ties to the mayor’s office and city agencies through well-connected lobbyists.

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