Senator Eliot Shapleigh - El Paso, Texas

Colorado's cancellation this week of a $10.5 million contract for voter registration software is raising concerns about Texas' nearly $1 billion contract with the same company to enroll residents in public assistance.

Colorado Secretary of State Gigi Dennis on Wednesday canceled the contract with Accenture Ltd. because of software bugs and concerns about timeliness. Officials in that state also are considering whether to cancel a $40 million Accenture contract to create a system to track state unemployment taxes and benefits.

Accenture, a global consulting and technology firm, took over operation of Texas Children's Health Insurance Program call centers Monday from Affiliated Computer Services Inc. It is expected to begin operating Texas' eligibility call centers for food stamps and Medicaid in 2006.

The Texas State Employees Union on Thursday urged state officials to delay implementing the contract.

"This should raise some red flags about whether this company is capable of doing this huge undertaking," said Will Rogers of the 11,000-member union. Some of the union's members are among the 2,900 state employees who were told in October that they will not have a job in the new eligibility system.

Accenture spokesman Jim McAvoy stood behind the company's record.

"Clearly, there's no reason for concern," McAvoy said. "We have a solid record of accomplishment for delivering systems on time and on budget."

In Texas, Accenture handles 40,000 to 50,000 calls weekly from the children's health insurance call center in Midland and an "enrollment broker" call center in Austin, which gives Medicaid recipients information about doctors. Both systems are performing well, said Jennifer Harris, a spokeswoman for the Texas Health and Human Services Commission.

Harris said the state's contract with Accenture "includes provisions that emphasize excellent customer service, ensure strong accountability for tax dollars and require strict standards for timeliness and accuracy."

Colorado, which was trying to meet a Jan. 1 federal deadline for its voter registration system, had spent $1.5 million of its $10.5 million contract when Dennis canceled it.

"The products that they provided did not meet our expectations, and (Accenture) continually was not meeting deadlines," said Dana Williams, a spokeswoman for Dennis, who took office Sept. 26.

McAvoy said the company was disappointed with that decision and that it was "not in the best interest of the citizens of Colorado."

The Colorado Department of Labor and Employment is considering whether to cancel a separate contract for tracking unemployment information because the project is two years behind schedule, The Rocky Mountain News reported.

McAvoy said the delays are because the state requested multiple changes to the project and the labor department has not responded to Accenture's offer to complete the project at no additional cost.

The Texas Workforce Commission uses a software program designed by Accenture for a similar task.

"We're happy with the product," spokesman Larry Jones said.

The Colorado contracts "are two fairly small-scale (information technology) contracts, and Accenture messed up on both of them," Rogers said. "They're about to embark on a much bigger (information technology) contract here in Texas.

"If there are any problems like in Colorado . . . many people (in Texas) who need food stamps or Medicaid will be adversely affected. State leaders need to proceed slowly and make sure this is the right company to do this," he said.