DSS reaches agreement with HP on failure to build a computer system for child-support payments

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COLUMBIA, South Carolina — The state Department of Social Services will receive $39 million under a settlement with Hewlett-Packard on the company's 2007 contract to develop a computer system for tracking deadbeat parents.

The agency announced Tuesday that the sides agreed to end litigation over failures to produce a centralized computer system required by a 27-year-old federal law.

The settlement calls for the state to collect $44 million from HP and pay $5 million. That covers invoices the state has withheld since canceling HP's contract in 2013. HP had argued the delays were due to the state's mismanagement.

The state is hiring Xerox to finish the system within two years.

The state has been fined more than $120 million since missing its extended 1997 deadline. HP and a previous contractor covered $51 million of that.

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