OPM and Hewitt Make Nice on RetirEZ
From Brittany Ballenstedt:
The Office of Personnel Management has settled its dispute with Hewitt Associates over a faulty retirement calculator for the agency's RetireEZ modernization project. According to a Hewitt statement issued earlier today:
"OPM and Hewitt have settled their dispute and OPM has rescinded its October 16, 2008 termination of the contract for default. The contract has been terminated by mutual agreement."
OPM originally cancelled the 10-year, $290 million contract with Hewitt in October because the company could not demonstrate that the retirement calculator and modeling portal worked. The contract required testing of the portal to have a 95 percent pass rate, but Hewitt's calculator passed only 33 percent of the time.
Amy Wulfestieg, a Hewitt spokeswoman, said Monday that the agreement means Hewitt is no longer considered in default of the contract. "The dispute is now settled, so we expect no further action by either party," she said. "The specific terms of the settlement are confidential."
OPM spokesman Michael Orenstein said Monday that other components of RetireEZ, such as cleansing and converting retirement data to an electronic format, are continuing as planned. "We're looking at our options in terms of moving forward with the calculator," he said.
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Well, isn't that nice. $290 million goes down the toilet, and now OPM and Hewitt engage in a love feast. Hewitt couldn't or wouldn't fulfill the contract they signed, and are given a pass, and can walk away not owing Uncle a dime (that's how I read the statement that the terms of the settlement are - surprise! - confidential). Nice work if you can get it. Think I'll put my bid in next time; my retirement calculator system is made of chewing gum and baling wire, and I'll give the government a break - they can have it for half of what Hewitt charged; am I a public spirited citizen or what? Of course, my contraption won't work either, but think of the cost avoidance with my low ball bid. Cancun here I come.
Jeremiah Posted Monday, February 9, 2009 5:31 PM$290,000,000? That must be some calculator!!
Dana Posted Tuesday, February 10, 2009 7:28 AMJeremiah,
Rock on Brother. If you need a partner let me know. I can do amazing things with bailing wire and pliers...
Paul Posted Tuesday, February 10, 2009 7:53 AMWill the new calculator compute a Federal Firefighter's retirement. Even the Federal Agencies that employ Firefighters have a hard time computing pay and benefits for them. So if the vendor is given the wrong information, how will the Firefighters get the correct computation on retirement pay ? The Firefighters should be able to have OPM compute thier retirement entitlement at least six months before retirement. This would allow them to correct the mistakes that always are made by the Federal Agencies they work for !
FEDUP-FIRE Posted Wednesday, February 11, 2009 8:47 PM