White House awards Accenture HealthCare.gov contract
January 11th, 2014
07:59 PM ET
11 months ago

White House awards Accenture HealthCare.gov contract

Washington (CNN) - The Obama administration has tapped the world's largest consulting firm to take over its beleaguered Obamacare website.

Accenture, a consulting and technology services company with 281,000 employees and $28.6 billion in revenue, won the one-year contract to continue fixing HealthCare.gov, the online health insurance marketplace set up by the Affordable Care Act. The Centers for Medicaid and Medicare Services made the announcement Saturday.


"As CMS moves forward in our efforts to help consumers access quality, affordable health coverage, we have selected Accenture to become the lead contractor for the HealthCare.gov portal and to prepare for next year’s open enrollment period. We are pleased that more than 1.1 million consumers already have enrolled in a private plan in the federal Marketplace thanks to existing efforts and look forward to working with all of our contract partners to ensure a smooth transition of this work," the agency said in a statement.

As lead contractor, the company will be in charge of not only improving the current site, but also preparing it for open enrollment next fall. The task includes 24/7 customer support, eligibility and enrollment functions, and transmitting the personal data in enrollment forms.

“We are honored to be part of the team of technology and healthcare companies and government professionals helping the federal government meet the healthcare coverage needs of its citizens,” said David Moskovitz, the chief executive of Accenture's federal services. “Accenture will bring deep healthcare industry insight as well as proven experience building large-scale, public-facing websites to continue improving HealthCare.gov."

CMS will pay Accenture $45 million for the initial phase of the contract. The two sides are still defining the extent of Accenture's work, and a final value for the contract will be decided then.

Obamacare's site launched on October 1, 2013, to disastrous reviews, as users experienced major problems accessing the site, creating profiles and selecting insurance plans.

The White House later fired the original contractor, CGI Federal, and it cut ties with the company Friday, choosing not to renew its contract.

CGI's original contract for HealthCare.gov was for two years and valued at nearly $100 million.

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.

Fixes since have resulted in improved performance of HealthCare.gov. At the end of 2013, more than 2 million people had signed up for coverage, with about half enrolling through the federal marketplace, officials said.

–CNN's Brianna Keilar contributed to this report.


Filed under: Obamacare • White House
soundoff (158 Responses)
  1. Jerry W Walker

    Is CGI going to pay some of the 100 million back? Were there not performance penalties in the contract?

    Or, did the CMMS leaders not define the requirements?

    Seems like CMMS as client project managers did not know what they should have been defining, monitoring, testing, etc.

    Another example of government waste, another 45% cost overrun with no accountability.

    January 12, 2014 07:49 am at 7:49 am |
  2. American Pie

    Way to go Accenture! My cousin works for Accenture and says it's a good company to work for. THEY PAY EXTREMELY WELL!

    January 12, 2014 07:55 am at 7:55 am |
  3. liberal disease

    you can't fix something that never worked

    January 12, 2014 07:57 am at 7:57 am |
  4. Rick McDaniel

    More pay back for supporting OBAMA??????

    January 12, 2014 08:02 am at 8:02 am |
  5. Tom

    Well, at least this time it's in the hands of a capable company with a track record of pulling off large scale government projects.

    January 12, 2014 08:06 am at 8:06 am |
  6. Jay

    Oh wow – this is a huge win for Accenture. Big task ahead of them trying to fix that mess, but if they pull it off they'll come out looking golden.

    January 12, 2014 08:17 am at 8:17 am |
  7. Thomas Nichols

    "...White House awards Accenture HealthCare.gov contract...:

    And another one bites the dust! And another one bites and another one bites and another one bites the dust!

    January 12, 2014 08:18 am at 8:18 am |
  8. nuclear mike

    And Accenture is the offspring of another past scandal...it just does not get any better in Wash-DC does it????

    January 12, 2014 08:34 am at 8:34 am |
  9. MILES DAVIS

    Great, they awarded this to a outsourcing company.

    January 12, 2014 08:36 am at 8:36 am |
  10. EdwardTr

    Nice, the former Arthur Anderson that today is incorporated in Cayman Islands and used amnesty law to repatriate millions of revenue at 3% tax rate. Can we not find an American company to do this.

    January 12, 2014 08:41 am at 8:41 am |
  11. Name jk. Sfl. GOP CRUZ lee&rubio 24billion dallar LOSS of your tax money conservatives,the garbage of America.

    Good for all Americans , obamacare will be a success.in spite of the GOP BS and gloom. And dome propaganda and obstruction of healthcare for all Americans while they have coverage for themselves. The GOP will lose the house because they have nothing to offer the American people and are the party of stupid and greed!!!!

    January 12, 2014 08:52 am at 8:52 am |
  12. Angus

    You thought it was expensive before... You've seen nothing yet with Accenture!

    January 12, 2014 09:06 am at 9:06 am |
  13. uncdig

    A little late, but at least a good move. Too bad Obama wasted hundreds of millions on Michelles college girl friend, but hey – what are friends for if you can't boon doogle the government to get them a few hundred mill.

    January 12, 2014 09:16 am at 9:16 am |
  14. DH

    Managed a contract with Accenture for Social Security. Said from the beginning that Accenture should have been hired in the first place for the ACA.

    January 12, 2014 09:17 am at 9:17 am |
  15. Mike Miller

    If you think that helathcare.gov was screwed up before just wait until Accenture gets a hold of it

    January 12, 2014 09:18 am at 9:18 am |
  16. Marie MD

    Accenture, good choice.

    January 12, 2014 09:18 am at 9:18 am |
  17. Chris Asking Question

    Has Accenture ever contributed money to any Democrat's political campaign or contributed to any Democratic PAC?

    January 12, 2014 09:19 am at 9:19 am |
  18. Richard B

    My company uses Accenture for our tech support. They are located in India. I was hoping for a more American solution to this problem than an outsourcing solution.

    January 12, 2014 09:22 am at 9:22 am |
  19. Gurgyl

    Great....but watch out these contractors!!!

    January 12, 2014 09:24 am at 9:24 am |
  20. king

    when will repubs come up with a rational policy and doesn't jump ship as soon as Obama climbs aboard. they run around the country shouting how this president wants the scrounge off tax payer for everything, on the other hand they are spending billions of dollars to kill obamacare and make folks scrounge off the government and tax payers. where does the hypocrisy ends. i am tired of the repubs blocking policies to get folks jobs, just because they have the power of the purse. this trickle down policies in a globalized world is crazy. their constant vacuuming money out of the economy to give to the big boys for them to invest in china is the most idiotic stuff I've seen over the years.the world is getting more globalized day by day, this is not a good thing for the average american especially the the middle class, because how the hell can the middle class in America compete with Chinese slave labor wages. and again when will some one call fox news and demand them to hire a dem host so people can hear the other side of the story and not just the right wing.

    January 12, 2014 09:24 am at 9:24 am |
  21. TSB8C

    Accenture is no better than CGI. They have a big contract with my employer and are now a full year behind schedule with numerous cost overruns. Another epic fail coming to a web site near you.

    January 12, 2014 09:27 am at 9:27 am |
  22. BillSmith2

    If it has anything to do with Demo-care, it gets lumped into Politicalticker.. Restricted freedom of speech/assembly there..

    January 12, 2014 09:30 am at 9:30 am |
  23. martin2176

    I thought visible corruption was only a 3rd world country thing..I am surprised this happened in USA and we are worried about gun permits,marijuana laws, road closure...what happened to the 400million ?
    appalled

    January 12, 2014 09:32 am at 9:32 am |
  24. WorstCompanyEver

    Accenture is one of the worst consulting companies out there. Can't count how many projects they've screwed up at companies that I've worked with, especially those 'huge' ones. Accenture is old Arthur Anderson (scandals) under a new name. As for outsourcing, they are almost completely Indian's with high school degrees at best. As for pay, they get about $20/hr which is less than half of what decent American consultants make and their 'consultants' aren't worth that. Let me know when you are really ready to clean up this mess.

    January 12, 2014 09:38 am at 9:38 am |
  25. Mark

    Angus

    You thought it was expensive before... You've seen nothing yet with Accenture!
    ---------------------------------
    Very, very true. This is the part people do not grasp when they whine about "big government" – its not big at all, head counts have not appreciably grown over the court of 20 years. What HAS grown enormously is private sector consulting and procurement – but ironically it does not save money; whatever might have been saved in theory is offset by the profit in practice.

    January 12, 2014 09:54 am at 9:54 am |
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