TSP suit against AMS settled

Thrift Savings Plan

American Management Systems Inc. has agreed to pay $5 million to the board that oversees the Thrift Savings Plan, settling a lawsuit stemming from the troubled TSP system modernization.

AMS was the original contractor for the TSP modernization.

The agreement, announced today, marks the end to the ongoing contract dispute over the troubled TSP computer modernization. The modernization effort has been troubled almost from the start, leaving both sides frustrated.

The acrimonious relationship culminated in July 2001 when the board fired Fairfax, Va.-based AMS and filed a $350 million suit alleging fraud.

The board had argued that AMS had failed to meet the terms of the contract, repeatedly missing key deadlines that resulted in at least four delays. AMS officials rejected the board's accusations, arguing that it was the board's failure to meet its contractual obligations that resulted in the failed four-year effort to implement the Thrift Savings Plan's new recordkeeping system.

Soon after AMS was fired, the board then hired Materials, Communication and Computers Inc. (MatCom) of Alexandria, Va., for a $20 million, one-year contract to complete the modernization.

"Basicly everything that AMS did ended up in the trash" said Lawrence Stiffler, director of automated systems for the board.

The board unveiled a host of new services on the TSP Web site June 16, although that debut was marred by system glitches that left most current and retired federal workers unable to access their accounts.

About the Author

Christopher J. Dorobek is the co-anchor of Federal News Radio’s afternoon drive program, The Daily Debrief with Chris Dorobek and Amy Morris, and the founder, publisher and editor of the DorobekInsider.com, a leading blog for the Federal IT community.

Dorobek joined Federal News Radio in 2008 with 16 years of experience covering government issues with an emphasis on government information technology. Prior to joining Federal News Radio, Dorobek was editor-in-chief of Federal Computer Week, the leading news magazine for government IT decision-makers and the flagship of the 1105 Government Information Group portfolio of publications. As editor-in-chief, Dorobek served as a member of the senior leadership team at 1105 Government Information Group, providing daily editorial direction and management for FCW magazine, FCW.com, Government Health IT and its other editorial products.

Dorobek joined FCW in 2001 as a senior reporter and assumed increasing responsibilities, becoming managing editor and executive editor before being named editor-in-chief in 2006. Prior to joining FCW, Dorobek was a technology reporter at PlanetGov.com, one of the first online community centers for current and former government employees. He also spent five years at Government Computer News, another leading industry publication, covering a variety of federal IT-related issues.

Dorobek is a frequent speaker on issues involving the government IT industry, and has appeared as a frequent contributor to NewsChannel 8’s Federal News Today program. He began his career as a reporter at the Foster’s Daily Democrat, a daily newspaper in Dover, N.H. He is a graduate of the University of Southern California. He lives in Washington, DC.


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