shortlink: http://shawnbeightol.com/blog/?p=228
I looked into the Deloitte SAP/ERP software contract with Miami-Dade County Public Schools in an attempt to answer the question: “What is MDCPS doing with its money from the state for education that 66 other counties are NOT doing since EVERY OTHER county has made an attempt to comply with Florida Law and the contracts they negotiated and pay their teachers a raise for experience and cost of living increases?”
I’ll start with my correction first:
Though I was not aware of the Deloitte termination when I wrote what I wrote yesterday, I did show you from MDCPS check register that Deloitte has received $13 million AFTER their January 2009 termination, including regular payments through this year, with this year’s payments in excess of $300000 this year:
Here’s the data:
| DELOITTE CONSULTING LLP |
07/20/11 |
$155,950.05 |
| DELOITTE CONSULTING LLP |
06/03/11 |
$131,392.77 |
| DELOITTE CONSULTING LLP |
03/28/11 |
$75,087.27 |
| DELOITTE CONSULTING LLP |
12/17/10 |
$115,980.12 |
| DELOITTE CONSULTING LLP |
06/23/10 |
$101,977.82 |
| DELOITTE CONSULTING LLP |
05/14/10 |
$329,413.53 |
| DELOITTE CONSULTING LLP |
11/20/09 |
$118,231.50 |
| DELOITTE CONSULTING LLP |
09/25/09 |
$423,541.86 |
| DELOITTE CONSULTING LLP |
09/02/09 |
$91,076.05 |
| DELOITTE CONSULTING LLP |
05/04/09 |
$67,642.35 |
| DELOITTE CONSULTING LLP |
03/13/09 |
$671,223.00 |
| DELOITTE CONSULTING LLP |
02/27/09 |
$1,867,500.00 |
| DELOITTE CONSULTING LLP |
02/13/09 |
$2,327,500.00 |
| DELOITTE CONSULTING LLP |
02/13/09 |
$6,247,500.00 |
| DELOITTE CONSULTING LLP |
02/06/09 |
$427,500.00 |
| DELOITTE CONSULTING LLP |
01/26/09 |
$71,775.96 |
|
Total |
$13,223,292.28 |
Perhaps someone in the district will tell you that they are simply paying for work done in the past…but the reason we “fired” them was for work they hadn’t done, for costs they had run up. Its odd that so many entities are suing to recover costs from Deloitte, but MDCPS is meekly paying during a time when they are so stretched for cash that they refuse to honor the May 18th, 2011 recommendation to give teachers and support staff “something more than nothing” (see PERC SM-10-100).
Aside from the Deloitte questions (such as, why is MDCPS still paying them when so many others are filing to RECOVER costs)…
The question still remains: “ is this all the reason why MDCPS is in so much financial distress that it is seeking to sell its downtown lands, cannot keep its contracts with its employees, and has made a highly questionable grab for Federal Race to the Top monies in concert with the United Teachers of Dade?”
Whether SAP is handled internally or externally, it is 2 years overdue (how much$) and the question of the cost in human power must be raised (we must have hired a bevy of outsiders to get it done…even if it were remotely possible to imagine retraining our local ITS guys to think that globally and acquire that much of a new skill set – why would they be working for us if they can do SAP now? – who is doing their job while they monkey around with installing SAP and replacing Legacy?)
Please read this in connection with the earlier email I sent to MDCPS School Board member Marta Perez at the bottom:
Thanks to Jordan Melnick’s work at TeachDade (pulled from the net for some reason, still archived here: http://web.archive.org/web/20090220154325/http://teachdade.com/ ) for the following leads:
Sunday’s article in the Herald (http://www.miamiherald.com/2011/10/14/2454659/miami-dade-schools-headquarters.html#storylink=misearch ) “The cash-strapped Miami-Dade school district is exploring whether the bump in land prices in the Omni area could ameliorate its financial woes” in conjunction with the questionable, desperate bid for Federal Race to the Top funds (http://shawnbeightol.com/blog/?p=205 )suggest that the effects of the economic downturn on MDCPS’ rabid adherence to the sinking Deloitte SAP implementation – see http://web.archive.org/web/20081220134320/http://www.teachdade.com/MDCPS-Deloitte may have been the wrong way to go when MDCPS School Board’s Marta Perez pushed MDCPS to dump the “black hole” of Deloitte/SAP (http://web.archive.org/web/20081222225350/http://www.teachdade.com/BOSS-Workshop-Thursday ).
Question: did the political contributions of Deloitte’s/SAP’s lobbyists to the school board members have any bearing on the vote to go forward and thus on the situation we now find ourselves? (see contributions 4 & 5 at http://goo.gl/2a1A4 vs. http://eac.dadeschools.net/agenda/sep07/item5.pdf p.2 “Rodriguez-Pina”; contributions 13 & 14 at http://goo.gl/jxkio vs. “Rodriguez-Pina” of http://eac.dadeschools.net/agenda/sep07/item5.pdf ; and contributions 141, 142, & 144 at http://goo.gl/tAzVm vs. “Rodriguez-Pina” of http://eac.dadeschools.net/agenda/sep07/item5.pdf, see also http://www.meridianpartners.us/ ).
Perhaps the article and information below this memo might explain the rash of this and similar recent foreboding emails:
| “URGENT: Important Tax Information – Payroll Check/Advice Dated November 4, 2011– Please Post!! |
This urgent message contains very important tax information regarding the payroll check/advice dated November 4, 2011.
PLEASE POST!! PLEASE POST!! PLEASE POST!!
As a result of the SAP Payroll Go-Live scheduled for October 28, 2011, please note the following for the payroll check/advice dated November 4, 2011:
· The Social Security and Medicare taxes taken from this check/advice, may be higher than previous payroll payments, due to the fact that the Social Security and Medicare taxes for expenses/benefits paid by the Board will be collected from this payment. ”
Consider this from “Teach Dade” (http://web.archive.org/web/20081001235207/http://www.teachdade.com/node/110 ) “in June 2007 — the month before SAP and Deloitte got the BOSS contract — the Los Angeles Unified School District’s payroll system issued 30,000 flawed checks to employees, mostly teachers. The problem continued for months, eventually causing disgruntled teachers to boycott afterschool meetings and camp out in district headquarters.
The point? LAUSD’s payroll system was an SAP module that Deloitte had implemented as part of a larger, BOSS-like program called Business Tools for Schools, or BTS. As of October, the BTS project was expected to cost $132 million to complete — $46 million higher than anticipated. That same month, the LAUSD School Board voted to hire an outside monitor to follow the situation. Meanwhile in Dade County, the district assigned personnel to its BOSS project.
The snafu in Los Angeles was not an anomaly. From eWeek.com:
“In 1995 Irish Health Services paid Deloitte $10.7 million to install an ERP system in three years. A full decade and $180 million later the project was incomplete and finally abandoned.The City of San Antonio, L.A. Community College, and the San Bernardino and Minneapolis School districts reported similar ERP implementation nightmares in association with Deloitte.”
ERP stands for enterprise resource planning. It is the generic name for programs like BOSS and BTS.
With so many harrowing examples available, it is hard to explain MDCPS’s choice of Deloitte. In any event, it has proven to be a $50 million mistake so far — rather costly with teacher raises in limbo. Forking over another $50 million to the same company would be unconscionable, not to mention a slap in the faces of teachers still waiting for a pay bump.
Of course, conceding a $50-million mistake is hard to swallow, too. If possible, the district should put its ERP implementation on hold and commit the allocated money to paying teachers. When the budget crisis blows over, it should resume implementing BOSS, which can achieve its purpose of making the district more efficient, but with a different software integrator.
From a Los Angeles Times editorial called “Garbage in, Garbage Out,” written in February:
“The lessons of this past year are only tangentially about SAP software; it can and does work for some companies. The lasting blame for this debacle lies with Deloitte for bad programming and worse advice, but also with L.A. Unified for the series of foul-ups that followed. If our school district cannot even pay its teachers, how can we trust that it is doing right by our children?”
The same goes for MDCPS. ”
If we are still accruing costs at the rate described here (page 8 at http://mca.dadeschools.net/AuditCommittee/AC_Nov08/item3a.pdf ) and we are now 34 -36 months beyond that “friendly” audit
The question arises: with press and reports like this http://www.scmfocus.com/sapprojectmanagement/2010/02/why-deloitte-has-problems-implementing-sap/ and http://www.scmfocus.com/sapprojectmanagement/2011/03/my-education-in-corruption-by-the-major-consulting-firms/ (including Levi’s losing 98% of sales in 2008 compared to 2007 due to Deloitte SAP problems), the recent revelation that Miami-Dade County (NOT schools) is dropping Deloitte for failure to uphold their contract (http://www.miamiherald.com/2011/09/26/2426580/miami-dade-county-fires-deloitte.html ), how much of the over-runs were honest technical issues, how much were due to incompetence, and how much were due to Deloitte generating more work for itself (job security)?
Finally, is this all the reason why MDCPS is in so much financial distress that it is seeking to sell its downtown lands, cannot keep its contracts with its employees, and has made a highly questionable grab for Federal Race to the Top monies in concert with the United Teachers of Dade?
Should MDCPS join with the other defrauded clients/customers in suit to recover overages for products that we are apparently still waiting to see implemented, with growing apprehension?
Please read my earlier questions and comments to Dr. Marta Perez, School Board member, MDCPS.
Regards,
Shawn Beightol
From: sb [mailto:beights@yahoo.com]
Sent: Wednesday, October 19, 2011 6:24 AM
To: Perez, Marta R.
Subject: Deloitte & SAP overruns and starving support staff and teachers
Dr. Perez:
Back in 2008, you attempted to bring attention to the “black hole” that the Deloitte SAP “investment” had become (I believe that was Mr. De la Portilla’s name for it in the June 2008 meeting as shown on the video here: http://www.zdnet.com/blog/projectfailures/miami-dade-school-district-and-deloitte-endless-money-pit/1226 ). Mr. De la Portilla requested in July 2008 that an outside audit of MDCPS be done. In the Fall of 2008, MDCPS hired Mr. Alberto Carvalho as the new Superintendent and Mr. De la Portilla submitted a motion to quash the audit on account of Mr. Carvalho’s changes to budgeting.
Yet, in November of 2008, KMG Auditing of Deloitte’s project implementation showed an optimistic over-run on billing and implementation (a very conservative 4 weeks).
Other sources then said it would be more like 6 months (which at the then rate of $3.5 million per month invoiced (see page 8 at http://mca.dadeschools.net/AuditCommittee/AC_Nov08/item3a.pdf ).
Here we are, 3 years later and employees are receiving emails almost daily telling us not to be alarmed that when Deloitte’s SAP payroll comes online in 30 days (yes, STILL implementing…3 years later! How much per month? How much total?), our paychecks may show numbers that will shock us!
We have heard about the many disasters Deloitte/SAP has wrought around the world – from NASA to Waste Management, to Australia.
Now we see that MDCPS problems are being offered as proof in a court case of racketeering against Deloitte: http://www.zdnet.com/blog/projectfailures/marin-county-claims-racketeering-against-deloitte-and-sap-part-one/12749
That was an $11 million implementation that they bungled and is still being litigated. They were smart enough to do what you tried to do in December 2008 when you reported that the cost overruns had been greatly understated and that the recent study showed ZERO return on investment. – They pulled out and filed lawsuits against Deloitte and SAP.
My question to you and to anyone who still cares about the truth and accountability:
how much have we spent OVER the $85 million originally budgeted to date?
Is this why MDCPS teachers and support staff are the only such school district employees in Florida who haven’t had their raise now in 3 years?
Thanks as always for your compassionate and courageous oversight of our schools, employees, and the children we teach.
Shawn Beightol