The State of Texas'Department of Information Resources will be taking over the project's management and re-soliciting bids for completing parts of the project from other companies.
Representatives of the Texas Department of Information Resources sent a letter to IBM this week, saying the company has failed to provide an acceptable plan to fix issues with the project's progress. About one month ago, the department notified IBM of the issues and gave the contractor 30 days to come up with a plan to fix them.
The department's spokesman Thomas Johnson said that IBM's contractual obligations would not change but that the state would be taking the lead. "DIR has taken full control over the contract and will proceed to re-procure all of the services within the contract," Johnson said.
The state will be looking for new bidders to complete each of the smaller tasks into which the four-year-old IBM contract will be broken into.
The seven-year project is to consolidate IT infrastructure of 28 state agencies into two data centers.
IBM spokesman Jeff Tieszen said the company disagreed with accusations of material contract breaches or the department's right to terminate the contract ÔÇô something the department asserted it had in this week's letter to the company. Tieszen said, however, that IBM hoped to "continue a constructive dialogue" with the state.
Representatives of the Texas Department of Information Resources sent a letter to IBM this week, saying the company has failed to provide an acceptable plan to fix issues with the project's progress. About one month ago, the department notified IBM of the issues and gave the contractor 30 days to come up with a plan to fix them.
The department's spokesman Thomas Johnson said that IBM's contractual obligations would not change but that the state would be taking the lead. "DIR has taken full control over the contract and will proceed to re-procure all of the services within the contract," Johnson said.
The state will be looking for new bidders to complete each of the smaller tasks into which the four-year-old IBM contract will be broken into.
The seven-year project is to consolidate IT infrastructure of 28 state agencies into two data centers.
IBM spokesman Jeff Tieszen said the company disagreed with accusations of material contract breaches or the department's right to terminate the contract ÔÇô something the department asserted it had in this week's letter to the company. Tieszen said, however, that IBM hoped to "continue a constructive dialogue" with the state.