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January 11, 2011

State nets $410K in computer settlement

By The Mainebiz News Staff

A Massachusetts company and its South Portland affiliate that sold computers to the state from 2004 to 2008 must pay $410,000 over the next year for violating contract conditions.

The Department of Administrative and Financial Services has settled a lawsuit against Managed Technology Partners, formerly known as CBE Holdings, and CBE Technologies, formerly CBE/ValCom of South Portland, that alleged the companies made excessive profits, according to the Portland Press Herald. CBE won a state contract in May 2004 in which it agreed to charge no more 5.75% above vendor invoice pricing for desktop computer systems used by state agencies, schools, municipalities and others. The state will recoup the money in excess of the contract price, plus interest and attorneys' fees. The contract prices were not listed in the lawsuit, but public records show the state paid CBE $11 million from 2006 to 2009. Earlier payments were not available.

Managed Technology Partners must pay 80% of the settlement, while CBE must pay 20%. CBE, based in Rhode Island, has been under new ownership since 2008, and the state is continuing to honor its contract with the company, according to the paper.

Go to the article from the Portland Press Herald >>

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