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July 12, 1987

COMPUTER SCIENCES LOSES CALIFORNIA DEPARTMENT OF HEALTH CONTRACT TO ELECTRONIC DATA SYSTEMS

By CBR Staff Writer

Computer Sciences Corp, El Segundo, California is howling with anguish that after it had been processing Medi-Cal claims for the California Department of Health for nine years, the state should have gone outside its boundaries to give the $122m contract to Electronic Data Systems in Dallas for the next five years despite the fact that the CSC bid was $2m lower: California says it doubts Computer Sciences’ tenacity and persistence and ability to perform under the contract because the company got into a mess that resulted in big delays in processing claims, and also failed to put in enough toll-free lines for people to call in on, CSC retorts that that is the first it’s heard of any of the complaints and that the Department of Health is simply finding excuses for having awarded the contract to the wrong guy.

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