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The Federal Retirement Thrift Investment Board said Tuesday that it might end or downsize its $50 million annual contract with the National Finance Center.

The NFC - an Agriculture Department agency based in New Orleans - handles some administrative duties for the Thrift Savings Plan, including a call center, mail handling facility and a computer mainframe to help with TSP customer support. On Tuesday, board members said they were frustrated because the January installation of a new mainframe has been delayed until May or June. According to TSP officials, the delay was caused by a lack of cooperation from the NFC.

"I think this is really a disgrace to be at this point," said TSP Board Chairman Andrew Saul. TSP officials and board members had repeatedly discussed their concerns with representatives from the finance center. "I don't understand why they're so complacent," he said.

TSP Executive Director Gary Amelio directed his staff to seek information on other vendors that might be able to handle the work done by the NFC. Thrift plan officials said the NFC also was planning to charge more for its support services, despite the dispute.

"This is an organization...that doesn't understand client service," Amelio said.

Housing the mainframe with a private vendor, TSP officials said, would most likely save money.

After being informed of the board's comments, NFC Director Jerry Lohfink said he had not heard of any problems with the thrift plan. Lohfink was named to his post in October 2003.

"I'm really not even aware of any dissatisfaction they might have with us," Lohfink said. "I think we are trying to do the things that they want us to do."

When asked about the installation of the computer mainframe, Lohfink said that Amelio suspended the project. Personnel at the finance center, he said, were prepared to resume installing the mainframe whenever directed.

The TSP board decided Tuesday to write a letter to Lohfink outlining the members' complaints. A key point, according to Saul, would be to ensure that operations are not interrupted.

TSP board member Alejandro Sanchez said Tuesday that the NFC might improve its performance if it were faced with losing an account worth more than $50 million. Other officials, however, suggested the relationship might be more fundamentally flawed.

"The writing is on the wall," Saul said.

COMMENTS

• How is it possible that this system has NEVER balanced? Why haven't we seen any auditors at the NFC? The old system had to balance to the penny. The new system has no way TO be balanced. HEY, this is MY money, not some government contractor's! Balance -- NEVER! NOT ONCE! EVER! GovExec.com reader Posted May 25, 2004 9:53 PM
• What will happen to the system when the mainframe software looses support from its major vendors in several months? Isn't that why the NFC was trying to upgrade the mainframe software that FRTIB didn't buy the licenses for? How much other software at NFC is not supported by the vendors? If the system software crashes after support has expired, who will fix it then? What will happen to the computations of daily balances? GovExec.com reader Posted May 25, 2004 9:46 PM
• I work on the phones at TSP and morale has become so bad that I am afraid people will start to go "postal." Now there is a rumor that by the end of the year I won't have a job because TIB has decided to use the new call center (which is supposed to open in July somewhere). Well, I know for a fact that NFC was the low bidder for the new call center yet TIB won't pick NFC. Of course, you would never know, this is all being done behind closed doors up at TIB. Why isn't anyone (media outlets) looking into that story? Why haven't my Senators and Congressmen said anything about this? GovExec.com reader Posted March 4, 2004 10:05 PM