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Illinois village awards software contract

12/30/2011

The Chicago suburb of Buffalo Grove recently finalized a software contract with New World Systems for a program to facilitate online bill pay for residents.

The village board approved the $396,600 contract, which will mark the first financial software upgrade for Buffalo Grove in 17 years, according to local news source the Daily Herald.

Scott Anderson, the finance director for Buffalo Grove, told the news source that the village's finance and IT staff have had to develop spreadsheets to compensate for the shortcomings of the outdated software systems.

The new software should be operational within 12 to 18 months, according to the Daily Herald. Once the system is up and running, village residents will be able to access and pay utility bills online.

While the Buffalo Grove contract is good news for New World Systems, tech companies need to exercise caution when entering into IT contracts with public sector entities, making sure all legal agreements are solid, given that the vagaries of politics can complicate deals.

This was recently illustrated in Missoula, Montana, where an $894,000 software contract led to a dispute between city and county officials, according to the Missoulian. Though the contract will be honored, it is likely the county will pay $20,000 to renege on its previously agreed-upon contribution of $86,000.