Eye On Boise

Contract: No cost to state now that Prop 3 voted down

I've had several inquiries from readers concerned that now that voters have rejected Proposition 3, that the state would face costs related to the now-canceled $182 million laptop contract with Hewlett-Packard. I can verify that according to H-P's Business and Scope of Work Proposal, which is included in the contract as Exhibit D, the state is not required to make any payments.

Bidders were asked to outline early termination costs if Prop 3 didn't pass. H-P said the cost would be zero, as its period of performance for the contract wouldn't begin until the day after the election. It's in Exhibit D on page 102-3; you can read those two pages here. It says, "With a projected start date after November 6, HP anticipates that there will be no lease funding necessary as no notebook units would have shipped or have been accepted prior to the Proposition 3 ballot in November 2012. Hewlett-Packard will not fund any Lease Schedule under the Master Agreement until and unless Proposition 3 has been approved by Idaho voters in November, 2012."

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Betsy Z. Russell
Betsy Russell covers Idaho news from the state capitol in Boise and writes the Eye on Boise blog.

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