The multi-billion dollar contract between the State of New York and M/A COM has been cancelled. The contract was going to place a wireless network throughout the state with the aim of providing public safety, however, the reasons behind the termination were put down to the high amount of delays and technological issues.

The state has already paid out a staggering $54 million but is clearly so unhappy with M/A COM that they have decided to cancel the whole ordeal. M/A COM won the contract over their competitor Motorola almost five years ago and the plan was to provide the network for the police, fire and ambulance services.

However, M/A COM are claiming that they are not in default of the contract and have released a statement on the matter. “We believe that M/A-COM has fulfilled its contractual obligations and delivered a state-of-the-art system that would benefit the residents of New York.”

Still, the state is demanding their money back through a $50 million construction bond holding account that the company had to create as a requirement for the contract. The state is also demanding additional re-payment for other expenses.

The state has explained, however, that just because they have fallen out of love with M/A COM, it doesn’t mean they will abandon their plans to provide the wireless network, as a spokeswoman for the state’s CIO, Angela Liotta, said, “By cancelling the contract, it doesn’t mean we’re cancelling our commitment.”

The state is complaining that M/A COM failed to fix 15 out of 19 issues that were found during a test of the service taken in November. According to the state there were a large number of equipment malfunctions that needed to addressed but were not.

M/A COM’s statement went on to say, “We recognize that the State’s current priorities may no longer support the construction of a state wide network and we have made several attempts to address this amicably with the State. Tyco Electronics and M/A-COM will take all necessary steps to protect the company’s rights under the contract.”

The issues are likely to see both parties being taken to court to come to a solution, although either way the situation will cost a fair amount of money, which is not an ideal scenario for either party during an economic crisis. The states plans will be put on hold for up to 18 months, however, according to Angela Liotta, as the state starts to look for another RFP to take over and complete the works.