TribBlog: Seeking a "Smarter" Contract?

The Department of Information Resources appears to be giving up on IBM — once and for all. The agency isn’t formally terminating its contract with the information technology and business consulting giant, which was supposed to coordinate the data centers and disaster recovery operations of 27 state agencies. But state officials sent a letter to IBM today saying they have no other choice to rebid the contract because they believe the company has failed to meet almost all of its obligations.

“The accumulated effect of under-investment by IBM, poor performance, and continual disregard … has resulted in harm to state agencies, exposure to unnecessary risks, and the failure to achieve the objectives set and agreed by IBM,” DIR executive director Karen Robinson wrote in a July 16 letter to IBM Vice President Cynthia McLean.

IBM hasn’t backed down; in the months-long disagreement with DIR, the company has turned the blame around, saying the state shares responsibility for the problems.

Those problems include:

• Failing to properly perform computer back-ups, resulting in data loss

• Not providing qualified staff to perform services, causing severe backlogs

• Failing to transfer all 27 agencies into "consolidated data centers" — only five have been completed

Here's the most recent letter, which follows a "notice to cure" sent by the state last month: