Computer company drops protest


Electronic Data Services, the Texas-based computer services company that processes Medicaid claims, will not protest the state's decision to replace it with a Virginia competitor.

EDS representatives met with Dan Stewart, assistant secretary with the state Department of Health and Human Services on Feb. 12, to present its case for the state to negate a new, $265.2 million contract with Computer Sciences Corp. EDS asked the state to let it keep the work, or to rebid the job, Lynn Bonner reports.

Stewart countered all EDS' points. EDS, which has processed the state's Medicaid claims for 32 years, decided to bow out.

In a letter to Stewart dated Friday, an EDS vice president said the decision not to file a protest was "based in the best spirit of cooperation."

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