Reform 6.3: Data Processing Corp

Examine Selling Off Data Processing Corp.

Other Information:

To enhance the value of competitive sourcing for city information technology, the city may want to consider selling the Data Processing Corporation. Under this process the city would award DPC a contract for its information technology services – provided that the cost is reduced by at least 15% to hit the assumed savings levels in the Roadmap to Reform. DPC would then have a long-term revenue stream (in addition to capital equipment and a valuable workforce) that could be potentially sold to a private firm. This two-step process not only achieves savings on an annualized basis for taxpayers by virtue of lower information technology expenses, but would provide the City with a one-time, up front cash payment for the value of the DPC asset. This vehicle should be examined for feasibility before final decisions are made regarding the award of additional information technology contracts.

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