Judge dismisses thrift board's suit against AMS

Judge dismisses thrift board's suit against AMS

A federal judge has thrown out a lawsuit filed by the Federal Retirement Thrift Investment Board against systems contractor American Management Systems Inc. of Fairfax, Va., citing the lack of jurisdiction to hear the case.

The suit, filed in July, accuses software giant AMS of mismanaging the computerized record-keeping system for the Thrift Savings Plan. The legal action was prompted by a series of schedule delays and cost overruns on the project (www.gcn.com/vol20_no21/news/4756-1.html).

The board, which is asking for $350 million in the suit, said it would appeal the ruling.

In 1997, AMS received a contract to upgrade the record-keeping system. The contract called for a May 2000 completion date at a price tag of $30 million. By July of this year, the work was still not completed and cost had almost tripled. That month, the board fired AMS and awarded a contract to Materials, Communications and Computers Inc. of Alexandria, Va. Matcom has been conducting its own analysis of the system and upgrading it.

Representatives of the board and AMS could not be reached for comment.

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