The Biggest Contract in State Government

It’s the biggest contract in state government. The $265 million Medicaid claims processing contract. And it’s awarded by Secretary Lanier Cansler’s department.
 
For years the contract was managed by EDS Corporation, but during Cansler’s first stint at DHHS (when Mike Easley was Governor) the contract was awarded to another corporation – ACS Corporation. Which when Cansler left state government to lobby became one of his clients.
 
ACS failed to deliver the goods (it never even got its system up and running) which cost the state millions – so its contract was cancelled and the state put a new contract out to bid and this time another Cansler client (CSC Corporation) won it – just before Cansler returned to DHHS as Cabinet Secretary.
 
Then history repeated itself.
 
CSC was supposed to have its new system up and running by August. But it doesn’t look like that’s going to happen. CSC asked for a 14 month ‘extension.’ But then there was another glitch. Apparently, there were doubts CSC could complete the work in 14 months. So, now, an 18 to 22 month ‘extension’ is on the table.
 
So what does an 18 month delay on a $265 million state contract cost taxpayers? No one is saying, especially Lanier Cansler.
 
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Carter Wrenn

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The Biggest Contract in State Government

It’s the biggest contract in state government. The $265 million Medicaid claims processing contract. And it’s awarded by Secretary Lanier Cansler’s department.
 
For years the contract was managed by EDS Corporation, but during Cansler’s first stint at DHHS (when Mike Easley was Governor) the contract was awarded to another corporation – ACS Corporation. Which when Cansler left state government to lobby became one of his clients.
 
ACS failed to deliver the goods (it never even got its system up and running) which cost the state millions – so its contract was cancelled and the state put a new contract out to bid and this time another Cansler client (CSC Corporation) won it – just before Cansler returned to DHHS as Cabinet Secretary.
 
Then history repeated itself.
 
CSC was supposed to have its new system up and running by August. But it doesn’t look like that’s going to happen. CSC asked for a 14 month ‘extension.’ But then there was another glitch. Apparently, there were doubts CSC could complete the work in 14 months. So, now, an 18 to 22 month ‘extension’ is on the table.
 
So what does an 18 month delay on a $265 million state contract cost taxpayers? No one is saying, especially Lanier Cansler.
 
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Carter Wrenn

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