SMRs and AMRs

Friday, January 10, 2014

Obama administration to end contract with CGI Federal, company behind HealthCare.gov

By Juliet Eilperin and Amy Goldstein, WashPost, Updated: Friday, January 10, 1:50 PM

The Obama administration has decided to jettison CGI Federal, the main IT contractor that was responsible for building the defect-ridden online health insurance marketplace and has been immersed in the work of repairing it.

Federal health officials are preparing to sign a 12-month contract worth roughly $90 million, probably early next week, with a different company, Accenture, after concluding that CGI has not been effective enough in fixing the intricate computer system underpinning the federal Web site, HealthCare.gov, according to a person familiar with the matter.

Accenture, which is one of the world’s largest consulting firms, has extensive experience with computer systems on the state level, and it built California’s new health insurance exchange. But it has not done substantial work on any federal health-care program.

In a statement Friday, CGI spokeswoman Linda Odorisio said that even as the company’s work on HealthCare.gov was wrapping up, “CGI’s 15-year relationship with CMS will continue, including work on the nearly $37 million in contracts that have been awarded to CGI since October 1, 2013.”

(More here.)

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