Tags: Healthcare Reform | CGI | Obamacare | website | contracts

Obamacare-Linked IT Firm Given More Government Deals

Tuesday, 05 Nov 2013 04:49 PM

The IT company chiefly to blame for the error-plagued Obamacare exchange website has recently been awarded several more lucrative government contracts, FoxNews.com reported Tuesday.

While embattled CGI Federal Inc. scrambles to fix the website's glitches after the disastrous Oct. 1 rollout, government officials have signed at least five different contracts with the company.

On Oct. 19, CGI signed an agreement with the Commerce Dept. for $266,164, to provide "IT and Telecom Systems Development" for the Patent Office, FoxNews.com reported.

But CGI officials say the signing of the contract is a technicality and it is actually an extension of an existing contract with the Commerce Dept.

Critics, however, have slammed the government for continuing to work with CGI Federal.

"This is a typical example of government creating perverse incentives," George Mason University economics professor Donald Boudreaux told FoxNews.com. “Unlike, say, a private homeowner who fires a contractor who does a poor job, the government rewards such poorly performing contractors with new work at lucrative rates."

CGI Federal was paid $290 million for its work in creating the HealthCare.gov exchange, and it was the one contractor that administration officials said failed to meet some expectations.

"We’ve had some issues with timely delivery," Marilyn Tavenner, head of the Centers for Medicare and Medicaid Services, acknowledged in testimony to Congress last week.

Criticism of the contracts spans both sides of the political aisle.

"I think it's a problem," said Alice Chen, who supports Obamacare and is executive director of Doctors for America. "I think you'd be hard-pressed to find someone who doesn’t."

Health policy experts also criticized the contracts.

"CGI Federal has no real skill set, and a lot of the projects they've worked on have failed," Avik Roy, a senior fellow at the Manhattan Institute who attended congressional hearings on the Obamacare exchange failures, told FoxNews.com.

He blamed government bureaucracy.

"In order to get through the procurement process of the federal government, you have to go through all these hoops. It's a highly organized thing just to meet all the regulatory standards. And so, the typical coders and programmers who would normally love to join a Google or a Facebook or whatever, they're never going to join a CGI Federal," he said.

But in congressional testimony, CGI Federal Senior Vice President Cheryl Campbell defended the company's performance as it continues to fix the HealthCare.gov website, which has prevented users in 36 states from enrolling or choosing a mandated health care plan.

"From our perspective, as painful as it sounds -- I know that the experience has been a difficult experience -- the system is working. People are enrolling," Campbell said in her Oct. 24 Congressional testimony.

The website's motto is "Our People Get Government. Our People Get It Done."

Campbell said, "There is no question that there are problems. And we are working together to solve those problems."

© 2015 Newsmax. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Kudlow: After Romney, a GOP Message of Incentives and Growth

Friday, 30 Jan 2015 20:20 PM

If there’s anything the GOP needs , besides a winner , it’s a confident, incentive-based, pro-growth message. The party  . . .

Israeli Ambassador: Boehner's Job to Tell Obama About Netanyahu

Friday, 30 Jan 2015 20:04 PM

Israel's ambassador to the United States says it was House Speaker John Boehner's responsibility to give a heads-up to t . . .

WSJ: Underground Network Helping Terrorists Operate

Friday, 30 Jan 2015 19:33 PM

The Islamic State (ISIS) is believed to be operating an underground network that may have helped terrorist Amedy Couliba . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved