Wrangling continues over Medicaid contract
Wednesday, December 28th, 2005
By Chris Fitzsimon
Lynn Bonner and J. Andrew Curliss, Staff Writers A lawyer for Electronic Data Systems, the company that lost the state’s biggest service contract, wrote Gov. Mike Easley last month asking him to stop its competitor’s work on a new Medicaid computerized payment system.
Affiliated Computer Services won the $171 million, five-year contract last year, and EDS has been fighting back since then. EDS has a lawsuit pending against the state, saying it wrongfully awarded ACS the work.
In the letter, EDS attorney Mark Ash highlights ACS’ delay in installing the system, which will increase project costs.
"We encourage you to require that work on this contract stop immediately," he wrote in the letter dated Nov. 14. "There is more than sufficient justification to cancel the contract and order a new procurement." (more…)
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