Cost of IT Legal Dispute Between Virginia And Northrop Grumman Could Approach $15M

9/12/17

By Michael Martz, Richmond Times-Dispatch

The ongoing legal battle between Virginia and Northrop Grumman already has cost the state an additional $2.9 million, but the bill for just two disputed services could approach $15 million under pending litigation.

In a tense appearance before the Joint Legislative Audit and Review Commission on Monday, state information technology officials blamed Northrop Grumman for the additional costs and continuing delays in the state’s effort to disentangle itself from the $2.4 billion, 13-year contract with the giant technology company, based in Fairfax County.

But a senior Northrop Grumman official faulted the state for refusing to honor a mediated agreement he said Gov. Terry McAuliffe’s administration made with the company early this year that would have resolved their differences and prevented the litigation now pending in Richmond Circuit Court.

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