FEDWIRE

Army cancels Workstation-1 T he Army last week officially announced the cancellation of the $594 million Workstation-1 procurement as previously reported in [FCW Sept. 9].

The decision to cancel contracts awarded to Digital Equipment Corp. and Hewlett-Packard Co. followed a partially upheld protest by losing bidder Sun Microsystems Inc. The Army's decision to cancel the program "stems from the conclusion that the time effort and expense associated with continuing the acquisition could not be justified in view of reduced Army demand for workstations and the availability of several other workstation contracts " according to a statement released by the Army Information Systems Selection and Acquisition Agency.Treasury completes three buys

Two Treasury Department bureaus the U.S. Customs Service and the Financial Management Service closed fiscal 1996 by awarding $74.7 million in networking hardware and services contracts.

Customs picked Computech Inc. Bethesda Md. to maintain its Automated Commercial System which is used to process imports. The pact worth up to $25.7 million over five years may include work on a follow-on system the Automated Commercial Environment pending a decision by the agency.

FMS finished two procurements that will allow the agency to upgrade its hardware and telecommunications networks. M-Cubed Information Systems Rockville Md. won a contract worth up to $21 million over five years to continue development of FMSNet the agency's local- and wide-area networks. M-Cubed also won a piece of the related $28 million FMS Enterprise/System 90 buy.CSC snares $70M NOAA pact

The National Oceanic and Atmospheric Administration awarded Computer Sciences Corp. a contract potentially worth $70 million to supply engineering technical services to the agency's Central Satellite Data Processing Center. The center is part of the National Environmental Satellite Data and Information Service which operates the nation's weather satellites.Cost of SSA code glitch reaches $850M

A computer software glitch the Social Security Administration uncovered two years ago that was originally estimated to cost the agency $479 million has turned out to be nearly twice as expensive. In 1994 SSA found that its computers improperly calculated retirement benefits for some 426 000 retirees who continued to work after receiving Social Security benefits.

SSA learned last week that an additional 300 000 retirees were improperly paid costing SSA another $371 million for a total of $850 million. SSA officials claim the software has been fixed and they plan to pay the extra benefits out of its surplus trust fund - now at $500 billion.Douglas to leave GSA

Judy Douglas director of information technology professional development at the General Services Administration can officially be added to the list of senior IT officials leaving the shrinking agency. Douglas will leave government service Oct. 25 to work as a managing consultant at Electronic Data Systems Corp.'s year-old Government Consulting Service group. Douglas said her new role will be "to manage various projects primarily in support of existing EDS contracts in other divisions."

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