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Half-finished $208-million DMV technology overhaul canceled


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Half-finished $208-million DMV technology overhaul canceled

California's computer problems, which have already cost taxpayers hundreds of millions of dollars, have mounted as state officials cut short work on a $208-million DMV technology overhaul that is only half done.

The project was intended to revamp the process for registering vehicles and issuing driver's licenses, with the entire overhaul scheduled to be finished this year. But state officials said they were canceling the vehicle registration component because little progress was being made.

The decision is a setback for the Department of Motor Vehicles, which has a history of such stumbles.

The state has spent $135 million total on the overhaul so far. DMV spokesman Armando Botello said officials are not sure what the final price tag will be now that the project's scope is being scaled back.

The state's contractor, HP Enterprise Services, has received nearly $50 million of the money spent on the project. Botello said the company will not receive the remaining $26 million in its contract.

The California Technology Agency, which oversees state computer initiatives, reported the project's termination to lawmakers Tuesday, days after another costly project stalled. Last week, the controller's office fired the contractor responsible for a $371-million upgrade to the state's payroll system, citing a trial run filled with mishaps. More than $254 million has already been spent.

"There seems to be a cascade of project failure lately," said John Thomas Flynn, who served as the state's first chief information officer, in the 1990s.

A cascade of failure. Yeah.

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