Viisage, state of Georgia settle contract dispute
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 stateÃ¢â‚¬â„¢s driversÃ¢â‚¬â„¢ 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 stateÃ¢â‚¬â„¢s new driversÃ¢â‚¬â„¢ 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 Ã¢â‚¬Å“best valueÃ¢â‚¬Â procedure.
The state of Georgia had planned to begin rolling out the new tamper-resistant driversÃ¢â‚¬â„¢ licenses in select markets in August. ViisageÃ¢â‚¬â„¢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.