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State Computer Contract Goes to Unlikely Company

Questions are swirling now on why the company, that came to fame for building the  website in the botched rollout of the federal government healthcare system, would be hired again…this time by Michigan officials.

Callls for second look at why CGI was hired

The Lansing State Journal is reporting today that Michigan spent nearly $90 million to secure a contract with CGI Technoligies and Solutions Inc. to build the state’s Enterprise Resource Planning system.  It will replace the Michigan Administrative Information Network (MAIN) which was built more than a decade ago at a cost of more than $120 million.

The report indicates the new system, which is now web-based, will track payments to state vendors, manage grants and grant payments, keep track of employee hours and sick time and aid in developing the state budget.

The CGI bid, which was $5 million higher than that of a New York-based firm, is calling into question those who brought the company–and it’s tainted reputation–on board for a project in Michigan.  The federal government and the company parted ways in February over problems with HealthCare.gov, which was develolped by CGI.

Company officials, though, are defending their record.  Spokesperson Linda Odorisio said CGI has successfully delivered hundreds of ERP programs that manage $700 billion and serve 93 million Americans.

Even some state officials are starting to have second thoughts on the award.  State Represenative Aric Nesbitt, R-Lawton, is chair f the House Committee on Energy and Technololgy.  He said he has concerns based on the article and would look the issues raised.  He, however, said he would reserve judgement on the contract until he has more information.

Democratic House Minority Leader Tim Greimel, however, said he’s already seen enough to draw conclusions.  He is urging more legislative investigation.  “It’s not unusual for the current Legislature to give very broad discretion to the Snyder administration.  This is a perfect example of why we need to hold the administration accountable.”

Join Jo Anne Paul and Steve Gruber weekdays from 5:30 to 9 AM on 1240 WJIM-AM and the Stations of the Michigan Talk Network.  Join the discussion by calling our hotline at (888) 900-9966!

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