Last week, the California Department of Health Care Services announced plans to change contractors to manage claims processing for Medi-Cal. Dallas-based Affiliated Computer Services (ACS) will replace HP Enterprise Services.

The new 10-year contract is worth about $1.4 billion. The bidding process took more than two years to complete.

California Department of Health Care Services (DHCS) Director David Maxwell-Jolly said in a statement that the process was fair and resulted in a contract that is good for the state.

“This bid process was an exhaustive, detailed, and labor-intensive effort,” said Maxwell-Jolly. “We went to great lengths to devise a system that ensures the state will receive outstanding services for its investment.”

Citing an ongoing contract process, an ACS spokesperson would only say that the company is moving forward.

“We are pleased about the Notification of Intent to Award and we look forward to finalizing the procurement,” said a company spokesperson.

California Department of Health Care Services officials said they intend to keep computer disruptions to a minimum during the transition.

However, according to a report in the Sacramento Bee, HP Enterprise Services (which has had the contract with the state since it purchased Electronic Data Systems) was considering appealing the award.