Print 35 comment(s) - last by NicodemusMM.. on Jan 14 at 10:37 PM

CGI Federal's contract expires February 28, and will not be renewed

The U.S. government's former contractor responsible for got the boot after the website proved to be faulty several times after launch, and now a new contractor is stepping in to clean up the mess. 

According to a new report from Reuters, Accenture is the new contractor in charge of The one-year contract is worth $45 million USD for the project's initial phase, with a total value of $90 million by the time it expires.

"Accenture will bring deep healthcare industry insight as well as proven experience building large-scale, public-facing websites to continue improving," said David Moskovitz, chief executive of Accenture Federal Services.'s first contractor, CGI Federal -- which launched the site back in October -- has carried much of the blame for the health insurance website's troubles.

For weeks after the initial launch, the site experienced slow speeds and loading messages preventing users from shopping the health insurance marketplace.   

CGI Federal blamed another contractor's software and ultimately the federal government on October 23 for the website's terrible performance. 


CGI Federal's government contract for will expire February 28, 2014, and the contractor said it will not be renewed. 

Back in November, Republican investigators with the House of Representatives Energy and Commerce Committee launched an investigation of the's troubles, and found emails from the project manager back in July 2013 that warned of potential issues that could arise. project manager Henry Chao sent an email out about the site's main contractor, CGI Federal, on July 16 saying that he "needs to feel more confident they are not going to crash the plane at take-off."

Staff shortages, problems with contractors and software issues were among the issues discussed prior to's launch. 

Microsoft even offered its help with's technical issues. The House Oversight Committee sent letters to others as well, such as Kayak and Verizon, looking for help.

President Barack Obama met with tech leaders in December to talk about's problems, and the government ended up pulling former Microsoft Office executive Kurt DelBene in to help out. 

Obama has called the website glitches "unacceptable." 

Source: Reuters

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By ipay on 1/13/2014 10:51:50 AM , Rating: 3
CGI Group is HQed in Canada. I always thought it seemed wrong to award domestic government (city, state, fed, etc) contracts with entities not domestic too.

RE: Canadian
By hughlle on 1/13/2014 11:01:09 AM , Rating: 2
You can keep your broken website if that makes you happier. One would hope that following the backlash, they would actually chose the best company for the job this time around, regardless of nationality. I agree with you, but i think given what has happened, they just can't afford the risk of choosing the next best alternative.

RE: Canadian
By ipay on 1/13/2014 11:10:01 AM , Rating: 3
You can keep your broken website if that makes you happier.
Uhhh... who's suggesting that?

Anyway... one of the real problems is the process involved in becoming a government contractor. Often the best and most nimble companies are not interested in or equipped to navigate the red tape, bureaucracy, or bribes, er... I mean lobbying required to get on the approved vendor lists. When your business is really getting contracts and not the services themselves, things are gonna sucks.

RE: Canadian
By MrBlastman on 1/13/2014 11:45:56 AM , Rating: 5
one of the real problems is...

... allowing any of this repugnant legislation to ever have been passed.

RE: Canadian
By Schrag4 on 1/13/2014 12:34:32 PM , Rating: 5
Maybe he meant:

"If you're happy with your current website, you can keep it!"

Sorry, couldn't resist.

RE: Canadian
By NicodemusMM on 1/14/2014 10:37:25 PM , Rating: 2
There's decent money in being a government contractor, but it's not worth the headache, imo. Take for example. When the client is the government and has the ability to change the requested product with four months to deadline, but also retains the ability to shift the blame far past said deadline, they are no longer the client... they're a businesses worst nightmare.

RE: Canadian
By NicodemusMM on 1/14/2014 10:31:42 PM , Rating: 2
Apparently you can't take the time to do a little research, so here's some enlightenment.

CGI Federal is a U.S. based organization. *gasp* Amazing how multinational companies do business isn't it?

If you can find any private sector organization as large as CGI that doesn't have subsidiaries doing work for governments that the parent company isn't headquartered in, then I'll STFU and move on. Good luck. Anyway, I'm pretty sure that the rules for working on such a project are more stringent than you realize... or at least took the time (seconds?) to think about.

By the way, if you think is the only U.S. government (city, state, fed, etc) project that CGI Federal is working on (and has been for even longer), then I have a bridge to sell you.

ipay... apparently not attention.

RE: Canadian
By BPB on 1/13/2014 3:19:07 PM , Rating: 4
Accenture is headquartered in Dublin! They are not American. I worked for a subsidiary of Accenture. When I started most of the HR paperwork assumed I was from India, and I lost 4 week's pay because I had to wait for I9 paperwork to be processed, which took them 4 weeks. My work was down the road at a local financial company. These guys hire Americans as a last resort, they make their money outsourcing and bringing in foreign labor.

RE: Canadian
By FITCamaro on 1/14/2014 7:49:24 AM , Rating: 2
Accenture has huge offices in the US. A friend of mine has worked for them for about 5 years or so. Do they have foreign labor? Yes. Do they have thousands of US employees who are citizens? Yes.

RE: Canadian
By BPB on 1/14/2014 9:54:00 AM , Rating: 3
The bottom line is they are replacing one foreign company with another.

And as for Accenture, they look for non-US workers first because it generally saves them money. If I blindfolded you, and then took you to the client that Accenture sent me to, and brought you into the cafeteria and removed the blindfold, you would have thought that I magically transported you to India. Most of the folks at this very large site were not from the US. Accenture is a proud outsoucer, they make lots and lots of money doing it. They care nothing about US workers, nothing. I worked for a subsidiary of theirs, but I worked primarilty with Accenture management. I became quite familiar with their business model.

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