Kansas still withholding $2M from 3M over DMV software glitches

3M Co. has yet to receive its final $2 million payment from Kansas for its DMV motor-vehicle software contract, the Topeka Capital-Journal reports. State officials say the new $40 million system is still too buggy and won't pay off the remaining $25 million contract until the issues are fixed, including system response times, availability, bugs and maintenance.

Author:: BMTN Staff
Publish date:: Nov 13, 2012

3M Co. has yet to receive its final $2 million payment from Kansas for its DMV motor-vehicle software contract, the Topeka Capital-Journal reports. State officials say the new $40 million system is still too buggy and won't pay off the remaining $25 million contract until the issues are fixed, including system response times, availability, bugs and maintenance.

Meanwhile, the Maplewood-based company has tapped former chief executive officer of UPS Michael Eskew as lead director on the board, the Business Journal reports. Eskew has been on 3M's board since 2003 and replaces Vance Coffman as lead director.

Click here, for the company news release.

Last week, 3M's President and CEO Inge Thulin revised the projections for annual sales growth set by his predecessor George Buckley. It was his first set of projections since taking over the top job in February.

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Kansas officials say they won't pay 3M the remaining $4 million the state owes on its $25 million contract until the Maplewood-based vendor fixes the state's new $40 million motor vehicle system. Among the issues, the Topeka Capital-Journal reports the new software didn't convert more than 70,000 records correctly and counties continue to report other problems three months after the May launch.

3M's chief financial officer says the Maplewood-based company is still trying to address objections by the U.S. Department of Justice to purchase Avery Dennison's office-supplies division for $550 million. Reuters reports CFO David Meline told investors, "We have a contract that remains in place at the present time and we are reviewing the situation."

Both 3M and Cogent deny any wrong doing, but have agreed to pay $1.9 million to shareholders and their attorneys. Bloomberg reports the investors claim Cogent CEO Ming Hsieh favored 3M to collect a retention bonus. The Maplewood-based company paid about $943 million in 2010 for Cogent.

Maplewood-based 3M Co. has agreed to pay $110 million in cash to buy Federal Signal Technologies Group, which focuses on electronic toll collection and parking management software services.

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Several companies gathered to swap power-saving tips at 3M's energy-efficiency summit on Monday. The Maplewood-based company touted its plan to change light bulbs across 35 million square feet of factory space, the Star Tribune reports.

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