Failed SAP project: California sues

Due to “significant error” an SAP project in the administration of the state of California failed. Now the state is suing the company. At SAP, however, they say that the software works the way it should.

heading_departmentA new billing software was to be introduced by SAP for around 240,000 public agency employees. But the state of California accuses the software company that this project has failed and is now suing a district court in Sacramento. As Computerworld  reports, the SAP system was supposed to replace a thirty-year-old installation.

“After three years and paying around $ 50 million to SAP for integrating its software into a new billing system for the state of California, only one system can be demonstrated, not even over a period of eight months, a test group of just 1,500 employees could settle correctly, “said the prosecution.

The contract was terminated in February . During a test phase, “significant errors” still occurred. The responsible state inspector John Chiang reproaches SAP, the software had miscalculated wages “too high or too low” and incorrectly determined pension contributions.

SAP spokesman Andy Kendzie told Computerworld on Friday that they are investigating the lawsuit of the state of California. Neither SAP’s software nor its implementation by SAP was responsible for the problems. “Our software works the way it should, and we have successfully set it up with our customer. In addition, we are disappointed that the examiner has filed a lawsuit, although SAP is seriously working with the legislator to resolve the issues with its implementation of the billing system. ”

The Californian Senate had already found in an investigation in August that the examiner because of “lack of transparency and lack of supervision” itself contributed to the problems, it said in the email of the SAP spokesman. “We stand behind our software.”

The project cost the California taxpayers a lot more than the $ 50 million that went to SAP. According to Computerworld, the system called MyCalPAYS was purchased in 2005 for more than $ 250 million. SAP did not participate in the project until 2010 after the original contractor BearingPoint was dismissed.

It’s not the first time California complains of SAP, according to Computerworld. The Marin County district accused the company and Deloitte Consulting of failing to run an Enterprise Resource Planning project. As part of a settlement, the district received $ 3.9 million. The cost of the project was $ 30 million. In addition, Marin County is said to have spent $ 5 million on the lawsuit.

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