News Release-- October 18, 1999

SAN DIEGO COUNTY POISED TO CREATE 'VIRTUAL GOVERNMENT': CAO Walt Ekard Recommends $644 Million Information Technology Pact

El Segundo, Calif., Oct. 18 -- The following announcement was made Friday, October 15, by the County of San Diego.

San Diego County CAO Walt Ekard announced that he will bring a groundbreaking $644 million proposal to upgrade the County's computer and telephone systems before the Board of Supervisors on Oct. 26.

If the seven-year contract is approved by the Board, it would be the largest information outsourcing project carried out by a local government agency in the United States.

The proposed contract calls for every desktop computer used by a County employee to be replaced within 36 months of the start of the contract and again within the next 48 months, allowing for a complete "technology refresh" during the life of the contract. All telephones will be replaced within the first 12 months.

The vendor, El Segundo-based Computer Sciences Corp., would also run the County's data centers and networks, along with providing user support, security management and other functions. CSC is partnering with San Diego-based Science Applications International Corp., Pacific Bell and Lucent Technologies.

"This is truly a momentous day for the County of San Diego," Ekard said. "Following the Board's action we will begin transforming the way we serve our citizens. Once our new systems are in place, citizens will no longer be forced to conform to our hours and drive to our offices to conduct business with the County. Wherever possible, we want residents to be able to access County services from their home or office computers."

About 290 County employees will have the option of transitioning to the vendor after contract approval. The contract calls for County IT employees to be guaranteed two years of employment in San Diego County with either CSC or SAIC, depending on each employee's particular skills.

Employees who don't choose to transition to the vendor have the options of receiving 20 percent of their annual salary as severance pay, or two years service credit toward retirement.

The IT project will allow the County to replace obsolete equipment, some of it decades old, and acquire new software systems for human resources, payroll, finance and property taxes. Along with offering such online services as access to vital records, camping reservations and plan checks, the County expects the IT upgrade to create other efficiencies that will save money for reinvestment into frontline services.

Security is another critical issue. Both CSC and SAIC are recognized as two of the top firms in the world in the area of data security. The companies will be charged with improving the County's protection of sensitive information, from keeping out hackers to securing voice communications. The contract makes CSC legally and financially liable for the unauthorized release of any confidential information.

Built into the contract are dozens of performance standards that the vendor team will be expected to meet. A system of financial incentives and fee reductions will come into play if the vendor either exceeds or fails to meet the performance standards. An example would be a problem with an employee's desktop computer. Once a call is placed to the help desk, the vendor must have the problem corrected within four hours.

The contract also contains fixed unit prices for all of the services provided by the vendor, which will be charged to the County depending on the volume of services utilized.

"Our County negotiating team did its utmost to detail in the contract exactly what is expected of the vendor," said Ekard. "Thanks to this diligence, we expect the relationship with CSC and its partners to be a very productive one."

The contract includes three one-year options for renewal at the County's discretion at the end of the seven-year contract.

CSC will also include a number of services and enhancements for the San Diego County region that go beyond the services that the County will pay for under the contract. They include:

• Twelve "Virtual Government" kiosks at various locations around the County.
  
  
• The installation of 100 Pentium III computers, with high-speed Internet access, at County libraries.
  
  
• Digital cameras, software and training at County animal shelters to enhance the ability of residents to search for lost pets or animals to adopt over the Internet.
  
  
• Funding for the San Diego Futures Foundation, a nonprofit entity that will provide hardware, software and training for economically disadvantaged residents throughout San Diego County.