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Thursday, May 13, 2010

Ind. Gov't. - Still more on: "Welfare modernization critics see progress: State system's chief credited with tremendous leap forward"

This ILB entry from yesterday, and earlier entries, discuss the post-IBM Indiana welfare system. Today Mary Beth Schneider of the Indianapolis Star reports in a story headed "Indiana, IBM trade lawsuits over troubled welfare project." Some quotes:

The state and IBM have each filed lawsuits against each other in Marion County this morning over the cancellation of IBM’s $1.34 billion contract for a privatized and centralized welfare delivery system.

Gov. Mitch Daniels canceled that contract in October after the system proved so unworkable that it was never expanded statewide as it was supposed to have been and after there were numerous complaints of wrongful denials of assistance, lost paperwork, and unanswered calls. The state’s Family and Social Services Administration has since moved to a hybrid system, combining modern computer technology with old-fashioned face-to-face contact between caseworkers and clients.
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“Less than three years into the 10-year contract, and despite having received more than $437 million in payments, IBM performed so deficiently that FSSA was left with virtually nothing of value from IBM’s failed performance, and indeed is now faced with expending hundreds of millions of dollars in re-programming and eventually entirely replacing IBM’s failed systems,” Indiana’s lawsuit states. “FSSA’s damages are significant and growing.”

Marcus Barlow, a spokesman for FSSA, said the state, in its lawsuit, is seeking reimbursement of every dime it has paid IBM; reimbursement of all overtime state employees incurred because of problems with IBM’s performance; and also wants IBM to be responsible for any federal penalties or damages from any lawsuits filed by others because of the welfare system’s shortcomings. * * *

IBM’s lawsuit, also filed this morning, wants the contract to be enforced, saying it allows them to be paid for fees and expenses it believes the company is owed. IBM has billed the state for more than $125 million to cover computer and furniture purchases and various fees. The state has refused to pay.

The Star includes lins to both the FSSA lawsuit against IBM, and the IBM lawsuit against FSSA (redacted).

The redactions, said to be "pursuant to a contract confidentiality agreement", are on pp. 11-12, para. 38 and 30.. Also para. 46 on p. 14, and portions of paras. 50 and 52 on p. 15.

See also Lesley Stedman Weidenbener's story in the Louisville Courier Journal.

Posted by Marcia Oddi on May 13, 2010 01:16 PM
Posted to Indiana Government