The Affiliated Computer Services unit of Xerox Corp. will become the fiscal agent for California's Medicaid program under a 10-year, $1.6 billion contract.

Dallas-based ACS succeeds the HP Enterprise Services (EDS) unit of Hewlett-Packard Co. as fiscal agent, responsible for administering the program and operating the Medicaid management information system.

Under the contract, ACS will assume operations of the current MMIS while it implements an upgraded Web-based system that supports new Medicaid information technology architecture standards.

IBM Corp., Armonk, N.Y; and Fairfax, Va.-based CGI Group Inc. will act as subcontractors to ACS. IBM will transition technology from the current MMIS to the new system and host applications. CGI will staff the enterprise project management office, manage quality management processes, automate business rules extraction from the current to new MMIS, and implement third-party collections software.

--Joseph Goedert


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