Display of sample license plates at the DMV office in Farmville, Va.
The agency has spent $23.7 million over five years on the $69.9 million systems redesign. It entered a contract last year with consulting firm Accenture to design and adopt the new system.
DMV said a disagreement arose over how much of the project work would be done on-site, and how much would originate from Accenture's global-delivery network.
Agency officials say the deal with Accenture is over but DMV still expects to complete the project on time and within budget by 2013. Accenture officials say they don't expect their firm or the state of Virginia to face penalties.