State Of New York Awards Xerox $565 Million Contract
By Rick Karlin.
Albany New york, Almost a year after the contract was awarded by the Department of Health, New York State has finalized a five-year, $565 million deal with Xerox Corp. to redesign and operate the information system for the state's $50 billion-plus Medicaid program.
Two other companies, Computer Sciences Corp. and Hewlett-Packard Co., had protested the contract, which prompted a lengthy review by the office of Comptroller Tom DiNapoli.
Among the concerns raised by the competitors were what they believed were short timeframes for getting the new system up and running.
In the award letter, DiNapoli's office said safeguards address some of those concerns, and the Health Department has taken ''proactive steps'' to make sure milestones in the project are met.The contract is scheduled to take effect 14 days after the decision.