Tech firms eyed in NYC also have state contracts

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The two companies at the center of an investigation involving New York City’s automated payroll project also have numerous contracts with state agencies, a review of records shows.

Science Applications International Corp., the company overseeing NYC’s CityTime project, holds 20 contracts with various state agencies worth about $44 million.

TechnoDyne, which SAIC hired as a subcontractor the payroll project, has two state contracts worth nearly $500,000.

Last week, federal investigators arrested Gerard Denault, a former SAIC consultant, alleging he received at least $5 million in kickbacks involving CityTime. Just days earlier, SAIC said it had fired the executive for misrepresenting his work hours and would return $2.4 million to the city for work Denault had billed.

Then on Tuesday, TechnoDyne abruptly shuttered its operations and fired its employees, according to numerous media reports that also said the company’s two top executives had returned to their native India.

SAIC, a Fortune 500 company based in McLean, Va., has an array of high-tech-related contracts with New York State. By far, the largest is a $23.7-million deal to provide an “imaging and enterprise document repository” to the state Office of Temporary and Disability Assistance, according to records on file with the state Comptroller’s Office. Another, for $7 million, covers consulting services to the Department of Correction.

TechnoDyne, based in Wayne, N.J., has a $247,000 contract with the Health Department for a “health information technology project,” and a $216,000 contract to provide programmers and analysts to the Temporary and Disability Assistance agency for a benefits program, records show.


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