Rhode Island agrees to settle DMV dispute with IT firm
By: The Associated Press
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PROVIDENCE, R.I. (AP) — Rhode Island has reached a settlement in its lawsuit against the company building a new computer system for the state Division of Motor Vehicles.
The state sued Palo Alto, California-based Hewlett Packard Enterprise Co. last year over the unfinished project to replace the agency’s 40-year-old computer system.
The contract dispute was scheduled to go to trial in May, but the sides said Wednesday they have agreed to have the case dismissed.
The state says it has agreed to pay an additional $5.5 million to vendor DXC Technology, which inherited the project through a recent merger involving an HP Enterprise subsidiary.
The state says it will also pay $1.5 million still owed under the prior contract.
The new system is scheduled to launch on July 5th.
A retired judge helped mediate the dispute.
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