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December 4, 2005

Accenture in trouble over local government contracts

The state government of Colorado has canceled a $10.5m contract with IT services and consulting provider Accenture Ltd, and has threatened to terminate another deal valued at $40m.

By CBR Staff Writer

Earlier this week, Accenture’s contract to build a new computer system to track voter registration was ended, with Colorado’s election officials saying that the company’s work did not meet the state’s expectations. Accenture had already received $1.5m from Colorado for its work under the deal, and the state will now miss the January 1 federal deadline to have the new electoral system in place.

Accenture hit back by claiming that Colorado officials had delayed making decisions on changes to the system, and had terminated the deal before testing the latest updates submitted by Accenture. The company also pointed out that it was working on, or had already completed, similar voter registration databases in Wisconsin, Wyoming and Pennsylvania.

Hamilton, Bermuda-based Accenture’s separate contract with Colorado’s Department of Labor and Employment is also reportedly in trouble. Under the terms of the deal, Accenture is creating a new system to track unemployment taxes and benefits in the state.

However, the project is now running approximately two years behind schedule, and last month the client threatened to kick Accenture off the contract. Colorado officials are said to be particularly concerned that the key aspect of the system, namely bringing together the tax and benefits aspects of the unemployment records, is still unfinished.

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