A failed computer-programming project wasted $36 million
in federal retirement assets according Senate Governmental
Affairs Committee Chairman Susan Collins, R-Maine, and
ranking member Joseph Lieberman, D-Conn.
They announced the findings of an investigation into
problems with a four-year contract between the Federal
Retirement Thrift Investment Board and American Management
Systems to develop a Thrift Savings Plan record-keeping
system, according to a committee statement.
The senators recommended supervisory staff to be assigned
to future projects, that independent experts be consulted
to prevent the board from becoming too dependent on one
contractor, and that the board use better risk management
practices and contract structures.
The software AMS developed cost too much, was behind
schedule and proved nearly useless, causing FRTIB to enter
into a new contract with Materials, Communications and
Computers, Inc., in 2001 and spend an additional $33 million
to get a working system, which took 18 months.
In a letter to the FRTIB chairman, the senators wrote,
“while it is clear that AMS failed to produce a workable
system and repeatedly missed its own deadlines and cost
estimates, the Board should have taken more steps early on
to prevent this failure and to protect plan participants
and beneficiaries from paying the tab.”
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