North Caroling facing $2 million penalty for e-procurement system.

• Position: News Briefs - Brief Article

A much heralded e-procurement project that was supposed to save North Carolina $52 million may end up costing the state more than $2 million by the end of June. The original idea was to establish a common database that would link the state and its vendors, allowing state agencies to shop for the most competitive prices and expanding vendor access to the government marker. The system was supposed to be financed entirely through a 1.75 percent vendor fee, which would cover the developer's costs and profit margin. However, state agencies have been slow to adopt the system--especially in light of the current budget crisis--and the projected volume of transactions has not materialized. As a result of...