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

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

Stop the Contracts!
By Chadder007 on 1/13/2014 11:43:13 AM , Rating: 2
Stop it with the contract labor and go in house! The contract labor is eating up 10x the money that going in house would have cost.

RE: Stop the Contracts!
By Rukkian on 1/13/2014 3:17:24 PM , Rating: 1
Not with the way many government employees work, and with how much their benefits cost.

For most companies, outsourcing is much much more expensive, however there are reasons (from an accounting standpoint), or even on a more nimble staffing option to use outsourcing.

RE: Stop the Contracts!
By ven1ger on 1/13/2014 3:18:51 PM , Rating: 2
You've never worked in gov't have you. If it was done inhouse, it probably would never have seen the light of day or would have been more messed up that it was. Gov't IT are not the experts nor do they have the experience to do this level of work, unless as taxpayers, you want to pay the kind of salaries they would be asking for.

Contracted work doesn't have to be costly, it's just that gov't bureaucracy and inefficiency adds to the costs of any contracted work.

RE: Stop the Contracts!
By Spuke on 1/13/2014 4:40:30 PM , Rating: 2
Gov IT does not have the experience to perform this type of work. Contracting is really the only answer here.

RE: Stop the Contracts!
By troysavary on 1/13/2014 4:50:09 PM , Rating: 4
In the case of ObamaCare, never seeing the light of day would have been a significant improvement.

RE: Stop the Contracts!
By Chadder007 on 1/13/2014 4:54:33 PM , Rating: 2
Actually yes I have.
Have you read this story?

RE: Stop the Contracts!
By ven1ger on 1/13/2014 6:43:51 PM , Rating: 2
Actually, I had read it when it first came out but gave it more of a cursory read. Contractors are a valuable assess to any kind of work that goes beyond your or your company's expertise. Government and any business have to rely on contractors to do work they don't have the expertise to handle the work, that's just normal business.

The problems that lead to the inefficiencies, such as costs and timeliness of projects are because all too many times the person that is managing the contract may not the requisite knowledge/experience on how to handle contracts.

A good contract will have many details worked out like goals, payment of deliverables, etc that is important in making sure that the contractor meets its obligations and the gov't/business also has to routinely monitor all contract work to be assured that all work is being done the way it is supposed to be done and timely.

"If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1,200 bucks for it." -- SCEA President Jack Tretton

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki