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Oracle Contract Now History

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The state has gotten rid of a much-criticized, $95-million computer contract that became an embarrassment for Governor Gray Davis earlier this year. The attorney general office and Davis´ General Services and Finance departments say the state has reached agreement with Oracle Corporation and one of its vendors, Northrop Grumman, to rescind the deal. The agreement calls for Oracle and Northrop Grumman to repay a $52-million loan that the state took out to pay for Oracle database software and the first year of technical support. Critics say state officials never verified the cost savings claimed by Oracle and Northrop Grumman.