Big Savings from IT Reform?

Peter Bacque with the Richmond Times-Dispatch is doing a good job of staying on top of ongoing developments at the Virginia Information Technology Agency. In today’s report, he reveals that Northrup Grumman has received the state IT Investment Board’s backing for a nearly $2 billion contract to rebuild Virginia’s IT infrastructure.

The potential savings are significant. The deal would be worth $1.986 billion over its 10-year length — about $38 million a year less than VITA spends annually now on the state’s hardware and software. That’s about 19 percent per year. That’s serious money, folks.

Of course, aspects of the deal must be opened to public scrutiny and subjected to public critique. But based on the numbers reported so far, it looks like a major win for efficiency in government.