Viisage, state of Georgia settle contract dispute

SSN Staff  - 
Thursday, July 22, 2004

July 22, 2004

BILLERICA, Mass. - Viisage has entered into an agreement with the Georgia Department of Motor Vehicle Safety to receive $2.5 million for work already completed on the state’s drivers’ license program by Viisage, while Georgia plans to issue a new request for proposals.
The settlement comes after Viisage competitor Digimarc ID Systems did not win the contract to create the state’s new drivers’ license, contested the contract award. Last year, a superior court judge issued a stop work order on the $20-million project when Digimarc filed a lawsuit claiming the state selected Viisage based on price and ignored its “best value” procedure.
The state of Georgia had planned to begin rolling out the new tamper-resistant drivers’ licenses in select markets in August. Viisage’s proposed price per license was 65 percent lower than bids by Digimarc and a third, unidentified company.
According to officials at Viisage, the settlement is expected to end the escalating legal costs that Viisage has occurred during the past year.