OPM Suspends Hewitt Retirement System Contract

First announced in a report yesterday afternoon by Government Executive, the Office of Personnel Management (OPM) has halted it’s $290 million contract with Hewitt to deploy the highly touted RetireEZ program for electronic retiree processing.  This was corroborated by a press release issued by OPM announcing the suspension publicly.  Per the release:

“OPM issued a stop work order for the implementation of the calculation engine, one of the three components of the modernization project known as RetireEZ.  In addition to the stop work order, OPM issued a show cause notice to Hewitt giving them 10 calendar days to respond to the performance issues OPM raised.” (OPM)

Commenting on the stop work order, a former OPM employee stated:

“I know that testing of RetireEZ has been going badly.  What Hewitt was trying to do was take an off-the-shelf program and squeeze the government computations out of that.” (GovExec)

A Hewitt spokesperson responded by stating:

“We successfully delivered on our first live date with OPM on Feb. 25, 2008 and as of the date of the stop work order, we were on track to deliver on successive dates as required by our contract.” (GovExec)

Director Linda Springer announced Wave 1 of RetireEZ on her desk page, and on February 25th, approximately 26,000 active employees from the GSA, OPM, National Archives and other agencies went live with the system.  All federal employees were to have been transferred to the system by February of 2009.  It is unclear how the stop work order will effect this timeline, with OPM conveying that the data conversion and change management portions of the project are continuing unabated.  RetireEZ’s home page states that the site is currently down for maintenance.

Let’s keep the conversation going.