Motivation behind CityTime Project:

The project history dates to 1998, when the city awarded a competitive contract to
a subsidiary of MCI for $63 milion that was expected to take five years. Three years
later, the contract landed in hands of SAIC, a defense conglomerate.
Most of the motivation to install the payroll system could be traced to one powerful
administrator on the inside: Mark Page, the budget director. A veteran bureaucrat
and descendant of J.P. Morgan, he had long been frustrated by myriad union
timekeeping rules. He saw the new system as a way to curb the chronic and costly
problem of police officers and firefighters receiving more overtime at the end of
their careers to increase their pensions. He also wanted to limit litigation which
amounted to several million dollars a year, from employees who claimed under the
Fair Labor Standards Act, thay they were being shortchanged in their paychecks.
One motivation for the continued push for CityTime was the money. Under one
proposal, if CityTime were sold to other governments, the city would receive
$200,000 and additional fees per user. NY State and Illinois were among those
approached, according to people involved.
Mr Page believed CityTime would curb timekeeping abuses and save the city tens of
millions annually. So wielding his power over budgets he forced reluctant
commissioners to adopt CityTime
CityTime keeps track of employee attendance and leave requests through a Webbased system. By 2012, around 150,000 city workers used CityTime.

What were the expected outcomes from the ERP

implementation
The expected benefits from ERP implementation were as follows:
a) Reduction in the paperwork of handling employee benefits and job
changes.
b) Reducing labor and IT costs for New York City.
c) Controlling overtime payments to the city employees and improving
accountability.
d) Reducing the mismanagement of the system and to deliver the
information accurately.
As a result of ERP implementation the following would be the outcome:

a) To create a modern automatic system that is used for managing

and updating the personal information for New York Citys
workforce along with information of employee benefits.
b) City time project objective is to provide an automatic payroll for
employees to control and check the undeserved overtime
payments to city workers, which are not possible before.

Describe the ERP implementation story briefly

The CityTime project had been implemented with an aim to modernize New York
Citys payroll system which would substitute computerized timekeeping with paper
records. The project began in the year of 2003 with a budget of close to $63 million.
In 2011, project costs had ballooned to $760 million and the staffing levels had
increased more than twice. By May 2011, federal prosecutors in Manhattan began
the procedure of indicting former employees of systems integrator for their
participation in a fraud scheme that siphoned off close to $80 million from innocent
taxpayers. Much of TechnoDynes operations and many of its employees were then
transferred to India, and thus were unavailable to U.S. officials. 165,000 New York
City employees are currently on the CityTime system. The cost per user is
approximately $4,000.
Meanwhile, the prime CityTime contractor, Science Applications International Corp.
(SAIC) received more than $600 million from the city. SAIC's project chief, Gerard
Denault, is accused of taking $9 million in kickbacks. SAIC's systems engineer, Carl
Bell, took more than $5 million and has already pleaded guilty to doing so.
Much of the bribe money flowed through Technodyne, a subcontractor hired by SAIC
and headed by an Indian-American husband and wife team, Reddy and Padma Allen.
(The Allens have fled to India to avoid prosecution.) SAIC pumped $450 million into
Technodyne, and the grateful Allens responded with a shower of illegal cash for
Denault, Bell and Mark Mazer, according to the government.
In return, investigators say, Denault, Bell, Mark Mazer and the Allens worked
together to pad the CityTime payroll and prolong the project.
The Allens shipped at least $50 million to companies they controlled in India. Part of
it was then wired back to the U.S. to shell companies controlled by Denault and Bell.
Mazer was paid off through a larger web of shell companies.
Things finally began to unravel about a year ago when an unhappy CityTime
consultant who been fired went to the city's Department of Investigation and blew
the whistle. DOI began its own probe and the feds were brought into case. Federal

indictments were returned about six months ago. Bondy resigned, but no charges
have brought against him.