Portsmouth liquor store

The New Hampshire Liquor Commission’s new Portsmouth New Hampshire Liquor & Wine Outlet located at the Portsmouth Traffic Circle. 

The New Hampshire Liquor Commission bailed on a $26 million, 10-year contract with a New York software company to update the commission’s computers systems after the company failed to meet its obligations.

The commission ended its contract with AlfaPeople, Inc. of New York at the end of last month — three years into a 10-year deal, according to E.J. Powers, a spokesman for the commission.

“NHLC and a steering committee comprised of representatives from multiple state departments determined AlfaPeople was not meeting its obligations under the contract and it was in the best interest of the state to compensate them for work performed and pursue a partnership with another vendor,” Powers wrote in a statement.

The state paid the company $9.6 million for its three years of work.

In July 2016, the commission hired AlfaPeople after a competitive bidding process to update its point of sale, inventory and ordering systems.

“Despite this change, the technical expertise NHLC gained and infrastructure that was established to date will be beneficial as it moves forward to a successful project completion and it has already begun the process of working towards identifying a new vendor,” Powers said.

At the start of the project, Erik Hoiden, managing partner of AlfaPeople, said the company has experience working with liquor organizations’ computer systems across the United States. The company didn’t respond to a request for comment.

“The new ERP (enterprise resource planning) system will provide us with a state-of-the-art solution that will support our business needs today and long into the future,” said New Hampshire Liquor Commission Chairman, Joseph W. Mollica, in a statement in 2016.

The state operates nearly 80 wine and spirits stores and brought in $691.9 million in net sales in fiscal year 2018.