State sues Hewlett Packard over delayed computer-system upgrade

(Updated 11:06 a.m.)
PROVIDENCE – The state on Tuesday filed a lawsuit against Hewlett Packard Enterprise, nearly 10 years after it awarded the California-based company a contract to upgrade Rhode Island’s Division of Motor Vehicles computer system.
The lawsuit, filed in Rhode Island Superior Court, also includes a request for a temporary restraining order to prevent Hewlett Packard employees from walking off the state’s still-incomplete computer project, according to a state announcement.
The new upgrade, called the Rhode Island Modernization System, was intended to replace the nearly 40-year-old system. If the court grants the restraining order, Hewlett-Packard employees would remain on the job through Nov. 21.
In a statement, Gov. Gina M. Raimondo said the company had “unfairly” demanded more money to complete the project. In a news release, Raimondo said company CEO Meg Whitman had “pledged [Hewlett Packard] to delivering a solution the people of Rhode Island deserve.”
Through a series of contract changes, Hewlett Packard had agreed to deliver a functional system by Sept. 28, the state argues. But the project remains “far from completion,” according to the state’s complaint.
In a statement, Raimondo said Rhode Islanders will get the system they’ve already paid for. To date, the state says it has paid $13.26 million for the computer system.
“On behalf of the residents of Rhode Island, I will hold HPE accountable,” Raimondo said.
A spokesman for Hewlett Packard Enterprise released the following statement in response: “HPE has met all contractual obligations with the state of Rhode Island and has made a substantial effort to reach a fair resolution of the dispute under the Rhode Island Motor Vehicle System contract. Given the progress that has been made by both parties, it is unfortunate the state has derailed this project by being unwilling to pay for additional work that the state requested and HPE performed. HPE is now forced to pursue legal remedies to recover compensation for its work.”

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