The state today affirmed its decision to hire Virginia-based Computer Sciences Corp. to a $265.2 million contract to install and run a Medicaid claims system.
CSC’s competitor, Texas-based Electronic Data Systems, had asked for a review, claiming the contract had been improperly awarded, reports Lynn Bonner.
According to a letter from Dan Stewart, assistant secretary for the state Department of Health and Human Services, EDS asked the state to cancel the contract with CSC and award it to EDS or re-bid the job.
In his response to EDS, Stewart rebutted all nine issues the company raised in protest.
EDS has operated the Medicaid claims system for more than 30 years. The company’s bid was $22.1 million higher than CSC’s.
The federal government pays 90 percent of the project costs. CSC will install the system and operate it for four years, starting in mid-2011.
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Re: State keeps CSC on the job
Are these people freaking kidding? We're going to pay for a new computer system but there will be no staff available to work on it because they've been laid off.