For the second time this year, Comptroller Peter Franchot has blocked the awarding of a major information technology contract by the state, this time a $55 million contract for Microsoft software for all state agencies and local governments as well.
“Here we go again,” Franchot said on Wednesday at the Board of Public Works meeting that approves large state purchases. “I see this all over the place ? that no way can we find a minority business enterprise.”
State Budget and Management Secretary Eloise Foster, which oversees IT for the state, emphasized that Microsoft designates only 18 large account resellers for its software, allowing volume discounts for only the largest organizations. The proposed contract to Software House International Inc. of Somerset, N.J., saves the state about 20 percent on software purchases. School systems and local government buy through this state program as well.
Foster said, “This is a contract where there has been no MBE requirement” in the past. But this award to Software House International includes 1 percent minority involvement for training.
“It?s a small step, but we have to start somewhere,” Foster said.
“If we don?t push back, it?s hard to make progress,” Franchot said. He wanted the state to contact “Mr. Gates and Microsoft” to complain about lack of minority participation, “not they would care what we think.”
Since Gov. Martin O?Malley is on vacation in New York, Lt. Gov. Anthony Brown was filling in as chair of the board for the first time. He agreed with Franchot.
The state should “use this time to communicate with Microsoft,” Brown said. “Microsoft needs to look at MBEs for larger contracts as well.”
In April, Franchot, joined by O?Malley, delayed the award of a $40 million IT contract at the University of Maryland when it had only 10 percent minority participation. In two weeks, the university increased the MBE contractors to 25 percent, the state goal.
But Franchot had little expectation that Microsoft would change the makeup of its volume resellers overnight.
“They may be oblivious to it,” Franchot said.
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