'I’m worried about the perception': Here's why ACC spent $1.7M on data center it never used

The Austin Community College Police Department investigated the college's IT department from March 2020 to December 2022 after allegations of "improper business practices" under its former chief information officer, ACC has confirmed to the American-Statesman.

From September 2020 to August 2023, ACC's IT department spent more than $1.7 million on a Virginia-based data center it never used. The center, within the northern Virginia technology corridor, was billed as part of the college's data security plan, but it never got off the ground.

The investigation, which had not previously been disclosed publicly and was first reported by KXAN, yielded no evidence of criminal conduct in ACC's "business processes, practices, or purchases," the college said in emailed responses to questions from the Statesman. However, it found that the chief information officer had "falsified his employment application at ACC." He was placed on administrative leave in March 2021 and resigned three months later.

The investigators found that the college's request for proposal process was followed and approved according to ACC operating guidelines from the college's board on June 3, 2019.

ACC approved the contracts with the Virginia-based data center and an Austin-based data center as part of the college's data security plan. ACC is still using the Austin data center.

ACC said it notified the FBI, the Texas Rangers' Public Integrity Unit and the Travis County district attorney's office about the allegations of improper business practices within the IT department but said it is not aware of any other agency investigating.

Russell Lowery-Hart, the college's new chancellor, is guiding ACC to evaluate its business practices. ACC is also launching an internal audit of processes that will be "openly shared" with the college community. The audit began last fall and is examining ACC's safety, operations and business practices.

The ACC investigation wasn't publicly disclosed. Who knew about it?

Lowery-Hart informed the ACC Board of Trustees of the "allegations, investigation, and final findings" in the fall when he began his term and plans to keep the board updated, ACC said.

The chancellor also sent a message to colleagues about KXAN's request for information about the investigation Jan. 4. The message said this "very issue" was also recently discussed in a campus conversation.

"I’m worried about the perception the alleged actions of one individual can imprint upon the institution," he wrote, reiterating that no criminal charges were filed. "That doesn’t mean there isn’t space to do better. When we reviewed the findings, it showed us areas where we can improve."

Why didn't ACC use the Virginia data center?

The Virginia-based center wasn't integrated into ACC's data system because of shifting priorities when the COVID-19 pandemic hit in March 2020 and due to staff shortages, ACC said.

ACC in 2019 approved its contract with the Virginia-based data center but "made an intentional business decision" to postpone the implementation due to shifting IT priorities, staffing constraints and the implementation of an enterprise resource planning system during the pandemic. The internal investigation into the college's CIO also delayed the use of the center.

ACC said there is no timeline to contract with another center.

Why did ACC pick an out-of-state data center?

The college said it purchased the Virginia site "to expand and upgrade its data center to multiple locations in an effort to best protect its data." Having its data spread out, ACC said, reduces the risk of data loss due to events in one area.

"Virginia, specifically, is well known for its reliable power supply, robust network infrastructure, and favorable business environment," the college's statement to the Statesman said.

ACC said it currently has no out-of-state data centers.

Did ACC's board know about the Virginia center?

The contract to use the Virginia center required board approval as the expenditure exceeded $100,000. At the board's June 2019 meeting, members voted to approve procuring Data Center Relocation Services with the vendor recommended: Single Point Global Inc., an IT service provider with locations in Ashburn, Va., and Austin.

The board's meeting agenda stated that ACC was to have a primary location within the Austin city limits and a secondary data center on the East Coast within the northern Virginia technology corridor.

What was ACC's cost for the data centers?

ACC's cost for the two centers was estimated to be $800,000 in the first year and $720,000 each year after that, according to the agenda. It stated that the contracts would be included in the operating budget for fiscal year 2019, in which $20 million was allocated for technology and capital equipment.

ACC had a 36-month agreement with the Virginia site ― for server equipment, internet circuits and the space ― from September 2020 to August 2023 at a monthly cost of $47,870. Any equipment purchased for the center is now being used at other ACC locations, the college said, and the Texas site is still operational.

ACC said its investigation found that the vendor was "properly selected" through the college's request for proposal process, such as soliciting proposals through advertisements in April 2019 in multiple publications, including the Statesman.

The college said there were no unexpected or additional costs to the Virginia-based center.

How is ACC moving forward?

Lowery-Hart said in an email to faculty members that the Houston-based firm McConnell Jones is conducting the college's business practices audit and is looking into allegations of impropriety by the college's former CIO, Imad Constantini.

Lowery-Hart said he will keep college staff members informed about the audit's findings as well as share with them the college's responses to the media.

"ACC takes allegations of this nature seriously," Lowery-Hart's message said. "I truly believe that our college is an incredible place to be, and the people who are here are here to do the right thing."

ACC said the first round of recommendations from the audit is expected in the coming months.

Editor's Note: A previous version of this story said that ACC did not name the college's former CIO. The college named him, but the American-Statesman was unable to reach him for comment.

This article originally appeared on Austin American-Statesman: Austin Community College spent $1.7M on data center it never used