U.S. drops contractor for work on Obamacare website
January 10th, 2014
12:13 PM ET
10 months ago

U.S. drops contractor for work on Obamacare website

Updated 1:32 p.m. ET, 1/10/14

(CNN) - The Obama administration has cut ties with CGI Federal for its work as the main contractor on the Obamacare website, a source familiar with the decision told CNN.

The contract was up and not renewed, the source said.

The Centers for Medicare and Medicaid Services, the federal agency charged with overseeing development of the website, said in a statement that it was working with its "contract partners" to ensure a "mutually agreed upon transition."

The flawed launch of the website in October was a big political setback for President Barack Obama.

Fixes since have resulted in improved performance of the online portal, where consumers can shop for health coverage.

The politically charged health care law, the Affordable Care Act, aims to allow millions of Americans without coverage to access insurance.

More than 2 million people had signed up so far under Obamacare at the end of 2013 with about half enrolling through the federal marketplace, officials said.

A number of states also have their own portals and other programs to sign people up for coverage.

CGI couldn't immediately be reached for comment.

It was lead contractor for building the problematic front-facing side of HealthCare.gov, a job with an original two-year contract valued at nearly $100 million.

The company came under fire following the webstie's difficult launch as users experienced major problems accessing the site, creating profiles and selecting insurance plans.

During testimony before Congress in October, CGI Senior Vice President Cheryl Campbell denied any wrongdoing by her company, telling legislators that it was not "unusual to discover problems" in a system with so many concurrent users that would need to be addressed after going live.

As part of Obamacare implementation, CGI is also performing exchange work in California, Colorado, Hawaii, Illinois, Massachusetts, Kentucky, New Mexico and Vermont, according to the company's website.

Officials in several of those states have also expressed dissatisfaction with CGI's performance.

Based in Canada, CGI presents itself as the world's fifth largest independent IT and business process services company.

The company has experience in health care IT as a partner to some of the Canadian Ministries of Health and as a provider of secure electronic medical records in Europe.

Its U.S. government contracting branch, CGI-Federal, has done more than $2.5 billion in business with more than two dozen government agencies since 2001, according to a search at USASpending.gov.

This includes nearly a billion dollars of work with the Health and Human Services Department, CMS's parent agency, as well as the Pentagon.


Filed under: Health care • Obamacare
soundoff (99 Responses)
  1. Badboy

    I cant believe people are still defending this POS prez...he hates white people, hates capitalism, democracy, hates freedom, and loves ignorance. You libtards are his favorite ignorant types of excrement! You keep voting for these
    criminals because you wont educate yourselves! I am a white male veteran, and he hates white males and especially veterans. Take your hate with you mr POS prez....Oh wait, this is probably Bush's fault.

    January 10, 2014 02:05 pm at 2:05 pm |
  2. WhatEver

    Harry is an idiot. Quite obviously never worked in business nor been involved in any I.T. project with major companies.

    January 10, 2014 02:05 pm at 2:05 pm |
  3. Wyatt Buchanan

    Demand a refund and if they don't fork it over sue them in court for breech of contract and get our money back!

    January 10, 2014 02:05 pm at 2:05 pm |
  4. hmm

    Sounds like obama made a web company to pay himself that billion dollars, then got rid of it so there are no traces.

    January 10, 2014 02:05 pm at 2:05 pm |
  5. Kenman

    The correspondent doesn't seem to know the actual price tag for the website, of as much as $630 million. Another point left out is the personal ties to Michelle and the company, and the fact that they were CANADIAN company with past issues and NOT an American company to begin with is not discussed enough!

    Also, this poliltically connected foreign company will continue to do work on the eight state sites (mostly liberal states) and continue to cause problems and make huge profits from OUR TAX DOLLARS!

    January 10, 2014 02:06 pm at 2:06 pm |
  6. Badboy

    SJJJ...you are 100 % CORRECT!

    January 10, 2014 02:06 pm at 2:06 pm |
  7. JL

    "The flawed launch of the website in October was a big political setback for President Barack Obama."
    It's always about Obama. How about the frustrations and pains its caused everyone attempting to use the site? Many who have signed up still aren't getting coverage because the insurance companies have not received their information yet.

    January 10, 2014 02:08 pm at 2:08 pm |
  8. FKell

    @Blake
    "It's the same in all levels of Government all over the world. People need to get upset with contractors over charging and underperforming, wasting their tax dollars and bureaucrats in government that don't know what they're doing overseeing them."

    This is what happens when you award contracts based on lowest bid or even sole source. You don't wind up with the industry experts, you end up with the experts in industry jargon and manipulation. The problem is that the real experts get paid real money, whereas most of these contractors would never let the actual engineers/developers get paid more than the management above them...

    January 10, 2014 02:08 pm at 2:08 pm |
  9. Chooch0253

    @MickeyiOregon Congratulations. You posted a fact free posting. Not one thing you posted is the truth. Most likely because you are not intelligent enough to actually research past Fox. Uninformed clowns like you think repeating the same lie about the cost of the website as over half a billion and other fabricated figures will somehow make it true. It won't. The company that developed the website knows how much they were paid to do so. Most certainly they know more than you possibly know. They reported the figure they were paid was $93 million. Just as has been reported many times. The fact you refuse to acknowledge it, means you are simpe minded, nothing more.

    January 10, 2014 02:09 pm at 2:09 pm |
  10. jtj33

    Impeach Obama. Criminal treason.

    January 10, 2014 02:11 pm at 2:11 pm |
  11. Nino

    Foreverflag, as soon as Bush, Cheney and Rice are put in jail!!!

    January 10, 2014 02:13 pm at 2:13 pm |
  12. momof3

    The State of CA just voted to take the contract handling Welfare payments/benefits AWAY from HP, and gave it to Deloitte, who stated that 25% of the work would be contracted out to CGI. Taking jobs out of CA, away from an award winning team, to give it to these fools who are currently being sued by 6 states from incompetence in their state benefits....way to go Jerry Brown and cronies. IDIOTS!

    January 10, 2014 02:14 pm at 2:14 pm |
  13. david

    CGI Federal's parent owner is CGI Group, not even an AMERICAN COMPANY!

    January 10, 2014 02:15 pm at 2:15 pm |
  14. frankiesweep

    At least we got rid of them before they were allowed to get our money.

    January 10, 2014 02:15 pm at 2:15 pm |
  15. frankiesweep

    at least we got rid of them before they got to much of our money...

    January 10, 2014 02:15 pm at 2:15 pm |
  16. HenryMiller

    "We need you to wait here?"

    What an appallingly arrogant thing for a web site to say! Any private company with a web page that said that would be out of business in short order.

    But this is the government. They don't have to respect you, so they don't.

    January 10, 2014 02:16 pm at 2:16 pm |
  17. S~

    Where the money go?

    January 10, 2014 02:16 pm at 2:16 pm |
  18. Chooch0253

    @ Dave as the cost of developing the website was only 93 million not 683 million as you FALSELY claim (nothing unusual in this) no need to bother responding any further. You think repeating the same lie over and over will make it true? It won't. The cost of the website was 93 million. Get a clue and stop being a simple minded sock puppet that repeats something because you think it "sounds" good.

    January 10, 2014 02:16 pm at 2:16 pm |
  19. j

    The New World
    The New World
    By Amiri Baraka 1934–2014 Amiri Baraka
    The sun is folding, cars stall and rise
    beyond the window. The workmen leave
    the street to the bums and painters’ wives
    pushing their babies home. Those who realize
    how fitful and indecent consciousness is
    stare solemnly out on the emptying street.
    The mourners and soft singers. The liars,
    and seekers after ridiculous righteousness. All
    my doubles, and friends, whose mistakes cannot
    be duplicated by machines, and this is all of our
    arrogance. Being broke or broken, dribbling
    at the eyes. Wasted lyricists, and men
    who have seen their dreams come true, only seconds
    after they knew those dreams to be horrible conceits
    and plastic fantasies of gesture and extension,
    shoulders, hair and tongues distributing misinformation
    about the nature of understanding. No one is that simple
    or priggish, to be alone out of spite and grown strong
    in its practice, mystics in two-pants suits. Our style,
    and discipline, controlling the method of knowledge.
    Beatniks, like Bohemians, go calmly out of style. And boys
    are dying in Mexico, who did not get the word.
    The lateness of their fabrication: mark their holes
    with filthy needles. The lust of the world. This will not
    be news. The simple damning lust,
    float flat magic in low changing
    evenings. Shiver your hands
    in dance. Empty all of me for
    knowing, and will the danger
    of identification,

    Let me sit and go blind in my dreaming
    and be that dream in purpose and device.

    A fantasy of defeat, a strong strong man
    older, but no wiser than the defect of love.

    January 10, 2014 02:17 pm at 2:17 pm |
  20. Government Waste Rules

    It's about time!!

    January 10, 2014 02:17 pm at 2:17 pm |
  21. Laughing

    The White House complains about American companies sending jobs out of the country and here is Obama outsourcing to Canada

    January 10, 2014 02:17 pm at 2:17 pm |
  22. Worship Warrior

    So the US government hired a foreign company to build their website? Nothing against Canada. But it's pretty sad when our own government does not support American businesses.

    January 10, 2014 02:19 pm at 2:19 pm |
  23. Chooch0253

    @ Badboy.. Speaking of ignorant, how are you? I am a male veteran. I served over 20 years. All active duty. I think the ignorance is being projected from you. You most certainly are not qualified to speak for "veterans" .You might want to take some advice. Get an education. The lack of it in your case, not to mention , any measurable functional brain cells, is apparent.

    January 10, 2014 02:20 pm at 2:20 pm |
  24. m123

    govt policy–don't hire the smartest, hire the cheapest

    January 10, 2014 02:20 pm at 2:20 pm |
  25. JohnBrownII

    Is this the company Michelle Obama's good buddy works for? Is this why they got the contract? Did the woman in question really visit the WhiteHouse multiple times? Is the WhiteHouse really sealing the visitor logs? obamacare stinks to high heaven....

    January 10, 2014 02:21 pm at 2:21 pm |
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