Iowa's Department of Human Service has been sued by a North Dakota-based company that wants a $140 million contract to manage part of Iowa's Medicaid system.
Noridian Administrative Services, of Fargo, N.D., says the department unfairly awarded the contract to Accenture.
New York-based Accenture is a global management consulting, technology services and outsourcing company.
According to published reports, Noridian's lawsuit says Accenture's bid proposal includes costs that are $23 million higher than those in Noridian's proposal and that Accenture's bid is "overly vague" in some areas.
Human Services Department spokesman Roger Munns says state Medicaid officials "ensured a fair and extraordinarily thorough process to evaluate proposals" and are confident their decision favoring Accenture was appropriate.