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New York Has Spent $64 Million on Little-Used Covid App — and the Cost Keeps Rising

Gov. Kathy Hochul (D., N.Y.) celebrates at her midterm election night party in New York, November 8, 2022. (Brendan McDermid/Reuters)

The essentially obsolete digital vaccine card that New York developed during the pandemic has cost the state government over $64 million since inception, and the number continues to grow as contracted companies are paid to maintain it.

The Excelsior Pass app was once touted as a virtual passport for vaccination verification, useful for presenting to New York City restaurants and recreational venues that required vaccination for entry. A couple of years after its launch, the project’s cost has ballooned past the original $2.5 million price tag announced by then-governor Andrew Cuomo two years ago. Since New York City and other localities around the state dropped the vaccine requirement for patronizing businesses and workplaces, the app is rarely used by most residents.

The Excelsior Pass has thus far cost the state $64 million, most of which went to IBM, Boston Consulting Group, and Deloitte, consulting firms that developed and maintenance the technology, the Times Union reported. The contracts with the latter firms, which amounted to $28 million, are now part of a state inspector general’s investigation into certain public spending during Covid. IBM received $36 million for its work on the app, the publication noted.

New York hired Deloitte and Boston Consulting Group before the pandemic for a five year commitment worth $59.5 million for the purpose of “transforming or reengineering government business models and operations,” an agreement obtained by the Times Union said.

“While the pandemic-driven need for ready access to vaccine records has subsided, the app continues to offer New Yorkers a safe and secure mobile application that brings state-issued digital passes, licenses and records directly to their fingertips,” state Department of Health spokesman Cort Ruddy said in a statement.

Even now that the app has been rendered nearly useless in the state, with most stores and employers having dropped their vaccine mandates, New York pays IBM $200,000 a month for data storage services surrounding the app. In March, $2.2 million was spent on “application development” for it, the Times Union said.

Richard Azzopardi, the spokesman for former New York governor Andrew Cuomo, told the publication that the app’s function and appeal were supposed to be broader than confirming vaccination status. The app also safeguards important medical and personal data for people to have on hand, he said.

“The work required to build the secure database that housed this critical personal information was not possible using the existing expertise, and like numerous other states across the country, we worked with outside consultants to make it a reality,” Azzopardi said in a statement. ” … Criticizing the project in hindsight is to have collective amnesia about the once-in-a-lifetime challenges we were up against.”

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