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April 28, 2008

DiNapoli Announces $4 Million Settlement With M/A-COM, Inc.

State Comptroller Thomas P. DiNapoli today announced a $4 million settlement with M/A-COM, Inc. after the State Comptroller’s office found the company billed the state for services it never provided and equipment the state had already paid for. In addition, the state has eliminated some services that were part of the original contracts with M/A-COM for a total of $23.6 million.

“Anyone who does business with the state has an obligation to provide the goods and services they promised,” DiNapoli said. “When that doesn’t happen, my office holds those businesses accountable so taxpayers aren’t shortchanged. M/A-COM did not fully live up to its contract, so we took action.

“M/A-COM is now building the most expensive technology project ever in New York, the Statewide Wireless Network. My office is auditing every phase of this project and watching expenses closely to ensure that taxpayer dollars are protected. Lives depend on the success of this project and the state cannot afford to make mistakes.”

This settlement stems from a review of contracts, not related to the Statewide Wireless Network, the state Division of State Police, the state Department of Transportation and the state Department of Correctional Services had with M/A-COM to acquire and maintain radio communications equipment. When auditors examined the payments under these contracts, they found M/A-COM billed agencies for preventive maintenance services it never provided and charged agencies higher prices than allowed under the contracts.

The state agencies acted upon the audit’s recommendations and tightened controls. In addition, the contracts with M/A-COM are being amended to drop maintenance services and other services will also not be used, saving the state $23.6 million.

Click here for a copy of the audit.

About the State Comptroller’s Office Role in Examining State Payments
DiNapoli’s office is responsible for approving all state contracts and auditing all bills for the state prior to payment. Questionable bills are audited and money may not be paid or it may be recovered if inappropriate bills are found. The State Comptroller’s office processes nearly 82,000 state payments daily. In SFY 2007-08, it processed more than 20 million payments totaling $87.3 billion.


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