Northrop Grumman fires back at state allegations of breach of contract

[TexasTowelie]

The legal skirmishing has escalated into an artillery barrage between the Virginia Information Technologies Agency and Northrop Grumman over the state’s efforts to disentangle from a $1.3 billion, 13-year contract for serving the state’s vast bureaucracy.

In an exchange of sharply worded letters in the past two weeks, the state agency and the company traded accusations that the other had violated the terms of the Comprehensive Infrastructure Agreement that has guided the public-private partnership since it began in mid-2006.

Northrop Grumman has informed VITA, as the technology agency is known, that the state had breached the contract by refusing to pay an estimated $4.2 million in Microsoft licensing fees that the agency disputes and the company contends the state previously had committed to pay.

The company asked for nonbinding mediation to resolve the dispute in a letter delivered to VITA on Sept. 23, along with three other letters denying allegations by the state that Northrop Grumman had breached the contract for services to state executive branch agencies.

Read more: http://www.newsadvance.com/news/state/northrop-grumman-fires-back-at-state-allegations-of-breach-of/article_949d1b9e-9271-5202-854f-17b5ee6adde8.html

[underpants]

1. What a mess

I am concerned about all the former employees of the Commonwealth who became NG employees 10 years ago. The ones I deal with seem to be quite happy but this could be a serious change in their retirement plans.