Oracle Workers Testify in Calif. State Software Contract Case

Oracle agreed Tuesday to let the employees testify at a June 4 hearing. If Oracle doesn't voluntarily comply, state Sen. John Burton said he'd "be happy to personally deliver the subpoenas."

The software deal with Oracle was billed as a way for the state to save at least $16 million--and potentially tens of millions more--through volume purchases and maintenance of database software.

But the state auditor said last month the contract could end up costing the state up to $41 million more than if it had kept its previous software supply arrangements, a conclusion Oracle disputes.

Adding to the controversy is the fact that Gov. Gray Davis received a $25,000 campaign contribution from the Redwood City, Calif.-based software giant a few days after the contract was signed. Davis said there was no link between the contract and contribution, but decided to return the donation anyway.

The Joint Legislative Audit Committee is investigating the deal, an arrangement Cabinet secretary Susan Kennedy said Tuesday was approved based on inaccurate or incomplete information.

Three state departments--the Department of Finance, the Department of Information Technology and the Department of General Services--signed off on the contract May 31, 2001. The auditor said none of the departments had done an independent analysis of the project's savings estimates, but relied on numbers provided by the vendor.

Barry Keene, the director of the Department of General Services, resigned in April, while Elias Cortez, the director of the Department of Information Technology has been suspended by Davis.

On Monday, Davis issued an executive order requiring competitive bidding on most state contracts worth at least $100,000. He also said he would sign a bill he vetoed in 1999 banning technology consultants from advising the state on computer contracts and then bidding on the same contracts.

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