Vivek Kundra

Washington, D.C. CTO

Kundra would hold the Virginia post for only a year before District of Columbia Mayor Adrian M. Fenty (D) persuaded him to join his administration as chief technology officer (CTO). Kundra took the job and quickly made major changes, including shifting the software the government used for spreadsheets and e-mails to Google’s versions as well as implementing web application contests to develop new technology for the District government’s web site.

Shortly after Kundra joined the OMB, federal authorities raided Kundra’s old District government office. They arrested two technology office managers and a subcontractor, charging them with a bribery scheme that allegedly defrauded the city out of at least $500,000.Nakamura, David, "Federal Probe Casts Doubt on D.C. Contract Reform Effort," The Washington Post, April 6, 2009 Kundra was not a suspect in the case, the U.S. Attorney’s office said.

After Obama won the presidential election in November 2008, Kundra joined his transition team and worked on technology policy for the new administration. In February 2009, Obama appointed Kundra as CIO.

Tech Initiatives

During Kundra’s time as the CTO of D.C., he led initiatives meant to increase the availability of government information to the public while decreasing the cost of providing it. In 2008, he offered prize money to any developer who could create applications that would ease citizen access to such government information as crime reports or pothole repair schedules. Kundra expected maybe 10 entries, but got 47 applications in 30 days. All in all, Kundra spent $50,000 for prize money and estimates that he saved over $2.5 million by not having to hire a contractor to do similar work."D.C.'s Kinetic Tech Czar; Mixing a Start-Up Mentality With a Whirlwind Approach," The Washington Post, Jan 5, 2009 

"I don't want to buy technology the old way," said Kundra. "Three years ago, D.C. schools spent $25 million to deploy a human resources software program. It failed, and not a single person was fired. And they had the audacity to ask for more money. How is that an intelligent use of taxpayer money?""D.C.'s Kinetic Tech Czar; Mixing a Start-Up Mentality With a Whirlwind Approach," The Washington Post, Jan 5, 2009

This is why Kundra backs many so-called “cloud” computing initiatives. Cloud computing uses hundreds of thousands of computers to store information online instead of dedicated and expensive physical servers. While Kundra worked for the District, he converted the entire office to Google documents for spreadsheets, word processing and email. Instead of spending millions for servers and $50–a-person per month for document software, Kundra got the cloud and the ability to create documents for free by using Google. Then he sprung for extra security and new labels on the program, which cost the District a paltry $50-an-employee per year."Making it happen," The Economist, Feb. 16, 2008

Subcontractor Investigation

In the summer of 2008, Kundra hired an outside company to handle the hiring of subcontractors for the District. By doing this, he hoped it would free District employees from having to handle more paperwork, get expert subcontractors on the job faster and limit interaction between subcontractors and city mangers, which had created relationships described by city employees and consultants to The Washington Post as “rampant cronyism.”Nakamura, David, "Federal Probe Casts Doubt on D.C. Contract Reform Effort," The Washington Post, April 6, 2009 The new system would be more transparent and efficient in doling out $75 million-a-year in technology contracts, according to Kundra. "The best disinfectant is more sunshine," Kundra told the D.C. City Council.Nakamura, David, "Federal Probe Casts Doubt on D.C. Contract Reform Effort," The Washington Post, April 6, 2009 

Kundra left his D.C. post in February 2009 to join the Obama administration. Less than a month later, the FBI raided Kundra’s former offices. Federal authorities said former technology security director Yusuf Acar, and the owner of a subcontracting company, Sushil Bansal, attempted to steal money through the creation of “ghost employees” and product invoices that were never delivered. The two men, with the help of a former technology employee working in the finance office, allegedly defrauded the District out of $500,000, according to the affidavit.Nakamura, David, "Federal Probe Casts Doubt on D.C. Contract Reform Effort," The Washington Post, April 6, 2009

The U.S. Attorney’s office said Kundra was not a suspect or under investigation.

The incident revived rumors of Kundra’s arrest while in college over another matter. A White House spokesman confirmed to the New York Times that at the age of 21, Kundra was arrested for shoplifting.Seelye, Katherine Q., "Chief Information Officer Is Quietly Reinstated," The New York Times, March 17, 2009  According to the Associated Press, Kundra stole $134 worth of shirts from a JC Penney store. He pleaded guilty to the charge in 1997, and served 80 hours of community service.Krangel, Eric, “Vivek Kundra's Crime: Shoplifted Some Shirts From J.C. Penney,” The Business Insider, March 18, 2009

The White House called the incident a “youthful indiscretion.”Seelye, Katharine Q., "An Official Is Reinstated, White House Announces," The New York Times, March 18, 2009