North Carolina has wasted $318 million dollars in a debacle regarding which company handles the state medicaid claims processing. EDS (now owned by Hewlett Packard) held the contract with North Carolina for years when in 2004 it was suggested to rebid out the contract. In 2004 ACS (Affiliated Computer Services) won the bid with the lowest cost, but failed to deliver a working system. The state cancelled, ACS sued, and NC paid 10.5 million for breach of contract. In 2008, North Carolina rebid the system, with CSC (Computer Services Corp) winning the lowest bid. CSC was supposed to have their system in place and switched over by this coming August, however they have yet to develop a working system as well. In the meantime, the state has paid EDS to continue providing services during the period until CSC can have a functioning system, which is now estimated to be July 2013. The state will pay EDS $110 million during this period. CSC has modified their original bid from $57 million yearly for 5 years to $70.7 million yearly for 7 years. So why isn’t North Carolina cancelling the contract and staying with EDS instead? Because Lanier Cansler, who is now North Carolina Secretary of Health and Human Services, was the lobbyist for CSC.
In other news, Chairman Eddie L. Wright has called a special meeting for Tuesday, June 21 at 4:30 p.m. in the Commissioners’ Conference Room, Vance County Administration Building, 122 Young Street, Henderson, NC. They plan to Hold Public Hearing for CDBG Grant Application, Adopt FY 2011-12 Budget Ordinance and Authorize Year-End Closeouts.
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