American Management Systems, whose assets were acquired in May by CGI Group and CACI International Inc., was hired in the late 1990s to develop a record-keeping system for participants and beneficiaries of a retirement-savings plan for civilian employees of the U.S. government and uniformed service members. Budgeted at $29.7 million and due for completion in May 2000, the project also was to provide members with online access to retirement accounts. Costs quickly ballooned to $65 million because of extra charges and delays, and Materials, Communications and Computers Inc., subsequently acquired by SI International, was called in to complete the project at a cost of $33 million.
The committee sent a letter criticizing the agency and AMS to board chairman Andrew Saul. It's waiting to hear back before determining its next step.