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Hawaii Governor Seeks Funds for Modern Financial Management System

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TLDR:

  • Hawaii Governor Josh Green plans to request additional funds from lawmakers to replace the state’s outdated financial management system.
  • The project has stalled after the state terminated its contract with a vendor last year, costing the state about $8 million.
  • The new contract is expected to cost $60 million in total.

The Governor of Hawaii, Josh Green, is seeking more funds from lawmakers to replace the state’s outdated financial management system. The project stalled last year after the state terminated its contract with a vendor, costing the state about $8 million. State Comptroller Keith Regan confirmed that the failure of the previous contract with Labyrinth Solutions Inc. resulted in the need for a new, larger contract for the project. The replacement of the financial management system has been a top priority for the state government, as the current system, named FAMIS, is a decades-old mainframe computer system.

The previous contract with Labyrinth Solutions Inc. was awarded at a cost of $16.5 million in 2021. However, the company later tried to renegotiate the terms of the deal. The state hired an outside consultant to track the project’s progress and found that Labyrinth Solutions Inc. could not meet the cost, schedule, or performance parameters of the contract. As a result, the state terminated the contract. Rick Miller, global head of delivery and executive vice president of InvenioLSI, a subsidiary of Labyrinth Solutions Inc., disputed the state’s account and claimed that the state misunderstood the scope of the job.

The state plans to request $5 million in the governor’s proposed budget to restart the project. However, State Comptroller Keith Regan estimated that the project will likely cost around $60 million in total. The administration will provide a governor’s message to the Legislature explaining how the funds will be used and will seek lawmakers’ approval. Lawmakers expressed skepticism about the state’s handling of the project and its ability to control costs.

Despite the setback, the state has received plans and other work products from Labyrinth Solutions Inc., which it can use in future efforts. State Chief Information Officer Douglas Murdock assured lawmakers that the state now has an entire team focused on organizational change management to ensure the success of the project. The proposed budget also includes $1.6 million for contracts that will be used to augment staff and free up employees in the Department of Accounting and General Services accounting division to focus on the computer modernization project.

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