Portland audit finds city wasted money on technology, software

The way the city of Portland buys its technology and software products has led to delays, overspending and accessibility issues, according to a city audit released Wednesday.

In the nearly two-yearlong review, auditors found that, “there was no citywide strategy in place for technology purchasing.” Portland has a Bureau of Technology Services that is supposed to manage technology for the city. But auditors found that individual bureaus frequently buy technology on their own – without coordinating with the central Technology Services department.

That’s led to duplicative spending. The audit pointed to one instance of the city buying one software bundle for $300,000 to manage city devices, then buying a program not long after for $700,000 to do the same task.

“An upfront strategy potentially could have avoided issues,” the audit reads.

The audit comes a week after Portland’s budget director told city commissioners that costs associated with technology were one of many factors contributing to the city’s current budget woes. Portland spent at least $63 million on technology in the past fiscal year, which ended in July.

The report said that a lack of coordination from the Technology Services department led to some projects being delayed by over a year. Delays often increase project costs.

The audit also shows that in purchasing technology, the city falls short of its mission to give 20% of its contracts to “historically disadvantaged businesses,” such as firms owned by people of color, women and veterans. In fact, the audit finds that the city doesn’t even keep track of this data.

“Without such direction on how to apply, balance, or prioritize these goals, bureaus potentially make decisions without the bigger picture,” the audit reads.

Auditors place blame on Portland’s soon-to-be former government. Under the current commission form of government, bureaus are able to buy technology independently, without coordinated oversight. In the new “mayor-council” form of government, which goes fully into effect in January, a city administrator will be responsible for streamlining technology policies and purchases across all city departments.

“Now that the City government is transitioning to the new mayor-council form of government, the City Administrator and other City leaders have an opportunity to improve buying technology and enhance coordination and accountability for bureaus,” said Portland Auditor Simone Rede in a press release.

Rede and the audit’s other authors also found a lack of accessibility in city-purchased technology for people with disabilities, like those who are visually impaired, and those who speak a language other than English. The report recommends the city offer guidance to ensure bureaus are purchasing technology that is accessible to all.

The city’s Chief Technology Officer Jeff Baer accepted the audit’s recommendations in response. Baer agreed that the form of government was to blame.

“[The Bureau of Technology Services]’ role in guiding technology purchasing across bureaus has largely been constrained due to the siloed nature of the soon-to-expire government structure,” he wrote.