Pa. state website contractor foregoes $5.1M

HARRISBURG, Pa. (AP) — A company hired by Gov. Tom Corbett’s administration to run Pennsylvania’s executive-branch websites will forego $5.1 million it believed it was owed after state Treasurer Rob McCord refused to pay it.

A Corbett administration spokesman, Dan Egan, said Wednesday the administration and Kansas-based NIC Inc. agreed that it was in the best interest of their partnership to move on.

The administration hired the company under a five-year, no-bid contract late last year to manage the state’s website infrastructure and technology. The contract initially was billed as a self-funding contract to be financed by new fees slapped on certain high-volume, online information requests by businesses.

But McCord cited concerns over the contract’s legality and correctness, and a spokesman Gary Tuma says the invoices fly in the face of a self-funded contract.

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