FILE - NH Liquor store

The interior of a New Hampshire liquor store under the authority of the New Hampshire Liquor Commission.

The New Hampshire Liquor Commission has canceled a contract with a New York software company hired to modernize technology at state-run stores and upgrade internal office systems.

“We thought it was in the best interest of the state and taxpayers and the commission to not carry out the entire term of the contract and move on,” Liquor Commission spokesman E.J. Powers told The Center Square.

The mutual ending of the contract took place Aug. 26, three years into the 10-year deal with AlfaPeople, Inc. Liquor Commission officials and a steering committee assembled from other state departments made their determination after evaluating AlfaPeople’s pattern of performance.

“The contract was for $26 million. We made them whole by paying them for work that was already done, which was $9.6 million,” Powers said. “The remainder of that $26 million will be used with a new vendor to complete the project.”

Commission employees are continuing to work off existing technology, and there has been no disruption to the state’s wine and spirits shops.

“Despite the change, the Liquor Commission has gained technical expertise and infrastructure through the process,” Powers said.

He added that the search is currently underway for another technology company and the selection should be made in the very near future.

“We are looking for a new vendor to take us to the finish line,” Powers said. “We will look to hire the most qualified vendor who can provide highly technical, specific expertise, one who can essentially guarantee that they will be able to complete the project for us.”

There was not one specific incident that led to parting ways with AlfaPeople, Powers said, but a steady failure to meet deadlines set forth in the 10-year agreement, which called for certain projects to be completed within fiscal years.

“It was more about certain milestones not being met,” Powers said.