State Comptroller Nancy Wyman today announced that her agency has begun a review of the contractual relationship between the state Department of Social Services (DSS) and its outside computer vendors, beginning with Electronic Data Systems, Inc. (EDS).

EDS has been the primary information-technology vendor for DSS and the agency's predecessors for nearly twenty years. In the last 10 years, DSS has paid the company more than $300 million.

Wyman said she decided to begin a review in response to recent developments regarding DSS's contractual relationships with EDS and other outside vendors. Specifically, Wyman noted a 1997 report by state auditors that EDS had not completed implementation of an Advanced Information System to process Medicaid claims that was originally slated to begin operating at DSS in 1994.

In addition, Wyman noted recent reports that EDS had past performance difficulties in several other states and international governments. A Nov. 16, 1998 article in Information Week magazine rated EDS last among the top 10 systems integrators evaluated.

"As the state's chief fiscal guardian, it is my responsibility to ensure that our tax dollars are being spent in the most efficient way possible," Wyman said. "The purpose of this review is to find out if Connecticut's taxpayers are getting what they pay for."

As a preliminary step in the contract-compliance review process, Wyman has requested from DSS a wide range of documents relating to the agency's relationship with EDS. The documents requested include: contracts; contract amendments; project plans; invoices; internal and external audit reports; memorandae of understanding and any other related documents.

Hand-delivered notification of the Comptroller's review was made Thursday to the Acting Commissioner of DSS, Valerie R. Marino.

Wyman expects the above documents to be available to her in four business days - in keeping with deadlines defined in the Connecticut Freedom of Information Act. The review will be executed by the Policy Services Division of the Comptroller's office.

The State Comptroller appreciates input on this and other issues from residents of the state. Please feel free to contact her office by phone - (860) 702-3300; mail - OSC, 55 Elm Street, Hartford, CT 06106; or, via E-mail - osc.opinions@po.state.ct.us

Learn more about the Connecticut Comptroller's Office by calling up our Internet Home Page, at the link below.

For Immediate Release
February 19, 1999

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