According to InfoWorld, the Pennsylvania Department of Labor and Industry had contracted with IBM in 2006 to help build a modernized unemployment compensation system for $106.9 million. But by 2011, the project had significant cost overruns, and by August the cost had risen to nearly $170 million, according to a study by Carnegie Mellon University’s Software Research Institute.
The Carnegie Mellon study, commissioned by the state Department of Labor and Industry, also had some criticism for state officials, InfoWorld reported.
Among the study’s criticisms: The original solicitation for the project had “major weaknesses,” including “unprioritized and often ambiguous requirements,” InfoWorld reported. Also: State officials failed to delegate project roles, which led to a situation where no one from the state was accountable or responsible for the program.