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Press Release

For Immediate Release
November 06, 2008

CONTACT: Chad Lersch
Department of Information Resources

Texas Department of Information Resources Issues Notice to Cure to IBM

(Austin, TX) - The Texas Department of Information Resources (DIR) has issued a Notice to Cure to IBM, the vendor on the state data center services contract. The Notice to Cure puts IBM on notice that it must correct deficiencies in contract performance dealing with data back-up. Over the past several months, issues regarding lack of data back-up and resulting data loss at participating agencies have prompted this action.

“DIR and the state remain committed to the consolidation effort under the state data center services contract,” said Brian Rawson, the state’s Chief Technology Officer. “Requiring this corrective action will ensure that the terms of the agreement are met so we can move forward with maximizing the efficiency of the state’s resources and taxpayer dollars.”

On October 28, Gov. Perry directed DIR to immediately cease all further data consolidation to allow for a thorough review of problems with performance related to the consolidation effort. The DIR Notice to Cure requires IBM to remedy the identified contract breaches within 30 days. Until the contract’s backup requirements are satisfied, additional consolidation has been suspended.

IBM leads Team for Texas, a group of companies which was awarded an $863 million contract in 2006 to consolidate and operate data centers across state government. The consolidation is anticipated to save taxpayers $178 million over the 7.5 year term of the contract. IBM began running state mainframe computers and servers on April 1, 2007. Currently, 14 agencies have mainframe, server, or print and mail operations in either the new built-to-purpose data center in Austin or the existing state data center in San Angelo.

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The Texas Department of Information Resources (DIR) promotes a shared vision for Texas that maximizes the value of the State’s technology investment by identifying common areas of interest, using technology to advance agency missions, and preserving flexibility to innovate. Visit DIR at www.dir.state.tx.us.

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