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The Boston Globe

Business

Flawed contract for jobless claim system cost state millions

A flawed contract negotiated by state officials provided few protections for taxpayers and little oversight of consultants, resulting in a computer system for unemployment claims that arrived years late, millions of dollars over budget, and riddled with technical problems, according to review of contract documents.

The agreement allowed the contractor, Deloitte Consulting of New York, to miss deadlines and still charge the state some $6 million more than originally planned, according to the documents, obtained by the Globe through a public records request. When the new system finally was rolled out July 1 — two years behind schedule — it erroneously cut hundreds of jobless workers from their benefits, and required thousands of overtime hours by state employees to handle the flood of complaints about the system’s many glitches.

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