Indiana, IBM near $1B deal

IBM is close to landing a $1 billion-plus social service eligibility system contract with the state of Indiana.

The pact, under negotiation for several months, cleared a hurdle this week when Gov. Mitch Daniels accepted a state panel’s recommendation to award a back-office services contract to an IBM-led bidding team. The contract would be worth $1.16 billion over 10 years to the IBM coalition, according to the state. The governor will decide whether to sign the contract after a public hearing Dec. 8.
The pending contract has been scaled back from the original conception. The Interagency Review Committee that examined the eligibility modernization project recommended what it describes as a hybrid approach. In that approach, IBM will modernize the state’s client eligibility information intake process, while the state retains responsibility and control over the client eligibility system as a whole, according to the panel’s recommendation.

In the hybrid system, state employees will make the final eligibility determinations for individuals applying for social services. The in-house portion of the eligibility system over 10 years is worth $500 million. That amount combined with IBM’s contract totals $1.6 billion. The state compared that total with an estimated $2.1 billion outlay if the state’s Family and Social Services Administration kept the entire modernization project in-house.

IBM’s coalition includes Affiliated Computer Services, Alpha Rae Personnel, Crowe Chizek and Co., Haverstick Consulting, Interactive Intelligence, Phoenix Data, RCR Technology and Arbor Education and Training.

Featured

  • Defense
    Ryan D. McCarthy being sworn in as Army Secretary Oct. 10, 2019. (Photo credit: Sgt. Dana Clarke/U.S. Army)

    Army wants to spend nearly $1B on cloud, data by 2025

    Army Secretary Ryan McCarthy said lack of funding or a potential delay in the JEDI cloud bid "strikes to the heart of our concern."

  • Congress
    Rep. Jim Langevin (D-R.I.) at the Hack the Capitol conference Sept. 20, 2018

    Jim Langevin's view from the Hill

    As chairman of of the Intelligence and Emerging Threats and Capabilities subcommittee of the House Armed Services Committe and a member of the House Homeland Security Committee, Rhode Island Democrat Jim Langevin is one of the most influential voices on cybersecurity in Congress.

Stay Connected

FCW INSIDER

Sign up for our newsletter.

I agree to this site's Privacy Policy.