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Oracle Contract May Be Voided

State officials have begun discussions about rescinding a potentially costly computer software contract that has become an election-year embarrassment for Governor Davis.

The 95 million dollar, no-bid contract between the state and Oracle Corporation was initially touted as a way for California to save at least 16 million dollars through volume purchases of database software and maintenance of those systems. The state auditor issued a report earlier this year saying the contract could end up costing the state up to 41 million dollars more than if it kept its previous software sources.

This post was last modified on 01/31/2009 5:28 pm