NOMADS computer system wandering lost, confused

NOMADS is the acronym for the project to develop an integrated system for the state Welfare Division that would go beyond any computer system developed by any other state.

So far, despite years of effort and millions of dollars, the Nevada Operations Multi Automated Data Systems is incomplete.

And the program is about $75 million more expensive than anyone ever imagined.

NOMADS began with a $22.6 million budget. Its cost ballooned to $88.8 million as of last October and will mushroom to more than $100 million by its completion - if it's ever done.

The history of the project chronicles missed deadlines, cost overruns, staff turnover, change orders and lack of consistent leadership. Also, there has been bickering between state officials and IBM, the business giant hired in 1992 to develop the program within three years.

NOMADS is now in its seventh year of development with at least one more to go. The state faces a $5 million fine from the federal government for failing to bring it on line by October 1997.

NOMADS was born after a 1988 federal law required states to have a single system for child-support enforcement. The goal was to get support payments to custodial families quicker, track down "deadbeat dads" faster and otherwise streamline the system.

The Welfare Division contracted for a feasibility study. The decision was made to produce an integrated computer system, not just a single program for child support.

NOMADS was one of the biggest headaches inherited by the administration of Gov. Kenny Guinn. The governor is hoping for an October 2000 completion date for the system's initial phase. But he's not terribly optimistic.

"Let's try one more time to fix this. If we can't, I have to stand up and make some bold recommendations," Guinn said. "I don't know what they will be as of today because I have to find out how far we get with this program.

"But the solution in the future is not going to be coming back and saying we need another $20 million to $30 million."

IBM submitted its general system design in June 1993, which was rejected by the Welfare Division, now under the administration of Myla Florence. It was another five months before IBM delivered an acceptable product.

Then came a flurry of contract changes. In June 1994 Integrated Systems threatened to pull out, saying the job was bigger than forecast. Despite some grumbling by state legislators the contract was renegotiated for an additional $6.8 million.

Welfare reform, both in federal and state law, compounded the problem in 1997. A decision was made to rewrite the codes to include the new changes. IBM was given an additional $2.6 million in November 1997 for the job.

The contract was increased by $7.4 million in April 1998 for continued development, testing and conversion. That brought the total paid IBM to $29.3 million as of March of this year and the company is still owed about $2 million for work performed last fiscal year.

The state took over management of the project last month, and some have suggested NOMADS be scrapped. But that could mean the loss of $25 million to $30 million a year in penalties from federal welfare funds.

Guinn convinced legislators of the need for a full-time state project manager with a salary of $125,000, the highest of any state workers except physicians.

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