Pennsylvania Terminates $170 Million Project With IBM Over Failure To Deliver Computer System It Promised

After seeing a technology project fall $60 million over budget and 42 months behind, state Labor and Industry Secretary Julia Hearthway has decided it’s time to pull the plug on a contract to modernize the state’s unemployment compensation computer system.

This decision announced at a news conference on Wednesday followed a $800,000 study by Carnegie Mellon University’s Software Engineering Institute that found the problems with the IBM Corp.-developed system to be unsolvable.

Spending any more money on trying to make the system, originally slated to cost $106.9 million, would have been a waste, Hearthway said.

The state now estimates the cost of the project has grown to $170 million but some payments have been withheld, a department official said.

Read more:  http://www.pennlive.com/midstate/index.ssf/2013/07/pa_terminates_contract_with_ib.html#incart_m-rpt-2

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