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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Indiana Welfare Systems Contract Breach

In 2006, the State of Indiana awarded a $1.3 billion contract to IBM to modernize and improve the state’s welfare eligibility system. In 2009, the state terminated the contract for cause, citing “numerous and repeated quality and timeliness failures” on the part of IBM. Both parties sued each other for breach of contract, with Indiana seeking $170 million in damages and IBM seeking $52 million. In August 2017, a state court ruled that IBM owed Indiana $78.2 million in damages ($128 million offset by $49.8 million in damages owed to IBM).

Misconduct Type
Poor Contract Performance
Enforcement Agency
State/Local
Contracting Party
State/Local
Court Type
Civil
Disposition
Judgment Against Defendant
Date of Appellate Ruling
3/22/2016
Contractors Involved Penalty
Total
IBM Corporation $78,178,109
Further Information Released
Final Judgment 8/4/2017
Indiana Supreme Court Opinion 3/22/2016

Federal Contractor Misconduct Database