From the News Service of Florida:
The state has started to impose daily fines and is withholding a $3 million payment to penalize a company that has helped overhaul the technically troubled unemployment-benefits computer system.
The Florida Department of Economic Opportunity announced Friday that it will hold back the payment and is enforcing a $15,000-per-business-day penalty against Minneapolis-based Deloitte Consulting for failing to deliver a "fully functioning" system.
Deloitte will be able to collect the payment when the system, known as Connect, is considered fully functional, department Executive Director Jesse Panuccio said Friday.
No deadline has been set for the system to be fully functional, but additional penalties could be applied if Deloitte is unable to complete the work without more consultants and vendors being brought in to direct and monitor the work.
"We always said there are issues with the system, and the question is at what point do we withhold payment and institute penalties," Panuccio said in an interview. "We think we've reached that point."
Representatives of Deloitte were not immediately available for comment Friday afternoon.