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Wednesday, July 21, 2010

Ind. Gov't. - "Indiana contends IBM welfare work was flawed from the start"

Ken Kusmer of the AP reports this afternoon in a story on the on-going lawsuit in Marion County Superior Court between the State of Indiana and IBM (the "dueling lawsuits") over the "$1.37 billion contract to automate intake for Medicaid, food stamps and other benefits received by more than a million Indiana children, seniors, elderly and disabled residents." Check this - just one quote from the long story:

In its July 14 response to IBM's lawsuit, the state says the social services agency began to observe problems with IBM's performance soon after the project's initial rollout to 10 northern Indiana counties on Oct. 29, 2007, and an expansion to the project's second region was delayed and eventually split into smaller segments.

“FSSA suggested delaying further rollouts until the performance outages could be cured; however, IBM assured FSSA that if the Region 2 rollout was implemented, IBM would recognize some efficiencies and economies of scale that would improve performance. Accordingly, FSSA agreed to the rollout of Region 2,” the state's lawyers wrote.

The filing appears to contradict statements public officials made at the time, in which they expressed satisfaction with the project.

Here are earlier ILB entries on the IBM contract.

Posted by Marcia Oddi on July 21, 2010 02:55 PM
Posted to Indiana Courts | Indiana Government