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Sunday, August 02, 2009
Ind. Gov't. - State paying millions more to "correct" IBM problems in implementing welfare contract?
Updating a long list of earlier ILB entries, the AP's Ken Kusmer has a report this afternoon headed "State’s IBM deal grows 15% to $1.34B." From the lengthy story:
Indiana will spend nearly $180 million more than it initially planned to privatize and automate many of its welfare functions just two years into a closely watched 10-year deal that is one of the most lucrative contracts in state history.The cost of the $1.16 billion contract Gov. Mitch Daniels signed in late 2006 has risen 15 percent, to $1.34 billion, under changes made to the agreement with a group led by Armonk, N.Y.-based IBM Corp.
The amendments, found in a contract review by The Associated Press, include one that gave the IBM group an additional $47.3 million — some of which will be used to correct problems with the project. Four top administration officials signed off on the additional money in April, shortly after Daniels told IBM officials they needed to fix a system that critics charge has erroneously canceled benefits even as the recession forces more people to seek food stamps, Medicaid and other government help.
Posted by Marcia Oddi on August 2, 2009 01:15 PM
Posted to Indiana Government