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What the contract says…

I'm still awaiting answers from the State Department of Education to a series of questions I had after reviewing the $182 million, eight-year contract between the state of Idaho and Hewlett-Packard Co. for laptop computers. But one thing is clear: The state's not getting the laptops for $249 apiece.

A fact sheet the department distributed on the day the contract was signed said, “Idaho is paying $249.77 per student/teacher for the managed service of providing the device, maintenance, security and technology support. If you include wireless infrastructure and professional development, the state is paying $292.77 per student/teacher.”

According to the contract, the state will pay $292.77 per laptop per year under a lease, and they're on a four-year replacement schedule. That means over the four years, the state will pay $1,171 per unit. At the end of the four years, the state is obligated to wipe the data from the laptops and let H-P pick them up, unless it wants to buy the units for $35 apiece. It also would have the option of buying them before the four years are up at various discounts: $147.56 after three years; $260.12 after two years; or $372.68 after one year.

Melissa McGrath, spokeswoman for the state Department of Education, disputes the $1,171-per-unit figure, because the $292.77 is a “fully burdened” cost per unit that includes tech support, wireless system maintenance, training and more. (However, in addition to the $292.77 per unit per year, the contract calls for the state to pay H-P $5.5 million for “infrastructure and project startup cost.”)

“It's not just one device and you're paying for it every single year to get that device - you're paying for a lot more than that,” McGrath said. If you use the department's $249.77 figure instead, the state's cost per laptop would be $999 over the four-year period.


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About this blog

Betsy Z. Russell covers Idaho news from The Spokesman-Review's bureau in Boise.

Named best state-based political blog in Idaho for 2013 by The Fix

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