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State claims board rejects software company’s $14.3m claim

June 4, 2019

MADISON, Wis. (AP) — The Wisconsin Claims Board has rejected a software company’s demand for $14.3 million for extra work building a new system to track state employee retirement benefits.

The board announced the decision Tuesday, clearing the way for Vitech Systems Group to sue the state.

According to Vitech’s claim, the Department of Employee Trust Funds entered into a $27.1 million contract with Vitech in 2014 to build the system. The agency kept changing the design, forcing Vitech to incur more costs. The company finally stopped work in March.

ETF officials say they paid Vitech $14.3 million between 2014 and 2018 for a system that’s only 7% functional. The state sued Vitech in March for breach of contract. Vitech’s attorney told the board in May that the company wants to file a countersuit.

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