Nevada DMV officials grilled on rising cost of computer system upgrade

CARSON CITY — Lawmakers questioned Nevada Department of Motor Vehicles officials Tuesday on why the cost of a major new computer modernization system approved in 2015 has increased by $5 million.

Assemblyman Chris Edwards, R-Las Vegas, said he experienced “sticker shock” when the project was presented and approved two years ago. Now the $109 million cost has increased to $114 million, and he asked how much more will be needed before it comes fully online in 2020.

Edwards said his constituents deserve to understand the costs of the system modernization project.

“This becomes very difficult for myself and others to explain,” he said.

Assembly Speaker Jason Frierson, D-Las Vegas, asked when Nevadans will reap the benefits from the project.

Izzy Hernandez, DMV program manager, said he does not expect the cost of the project to increase any further. DMV customers should start to see the benefits of the system when the second phase of the three-phase project comes on line in November 2019. The full project should be implemented by late 2020, he said.

DMV director Terri Albertson said the phased-in approach is intended to ensure the project rolls out smoothly. The last modernization effort, called Project Genesis from 1999, did not go well, she said.

“We do not want to do a big-bang deployment,” Albertson said.

The new system will reduce wait times at DMV offices and allow more transactions to be performed online to simplify doing business with the agency, Albertson said.

State officials last year approved a $75 million contract to implement the new DMV system. The contractor is Tech Mahindra Limited, based out of San Jose, California.

Edwards said he is “hopeful” the $5 million increase will be the last, and the agency might realize some savings as the new system is implemented.

The agency said the original estimate of $109 million came before a contractor was in place and before any development had begun. Once the work started, the DMV determined it needed additional software, hardware and specialized positions, along with contingency funding for any unanticipated changes that may come from the legislature or federal regulations.

The project is being funded in part by a new $1 technology fee on transactions approved by lawmakers in 2015.

Contact Sean Whaley at swhaley@reviewjournal.com or 775-461-3820. Follow @seanw801 on Twitter.