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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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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.

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