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Feds Reviewed Only One Bid For Obama-Care Site

From the Washington Examiner:

Feds reviewed only one bid for Obamacare website design

By RICHARD POLLOCK | OCTOBER 13, 2013

Federal officials considered only one firm to design the Obamacare health insurance exchange website that has performed abysmally since its Oct. 1 debut.

Rather than open the contracting process to a competitive public solicitation with multiple bidders, officials in the Department of Health and Human Services’ Centers for Medicare and Medicaid accepted a sole bidder, CGI Federal, the U.S. subsidiary of a Canadian company with an uneven record of IT pricing and contract performance.

A Canadian company? Is this how Obama focuses on job creation in the US?

CMS officials are tight-lipped about why CGI was chosen or how it happened. They also refuse to say if other firms competed with CGI, or if there was ever a public solicitation for building Healthcare.gov, the backbone of Obamacare’s problem-plagued web portal.

Instead, it appears they used what amounts to a federal procurement system loophole to award the work to the Canadian firm…

Maybe the company is an Obama donor and/or crony.

Between 2009 and 2013, CMS officials awarded 185 separate task orders to CGI totaling $678 million for work of all kinds, according to USAspending.gov, a federal spending database.The Obamacare website design contract was for $93 million.

There is no evidence CMS issued any public solicitation for the Obamacare website contract. The Examiner asked both CMS and CGI for copies of any public solicitation notice for the Healthcare.gov task orders. Neither CMS nor CGI furnished any such public notice…

Both USAspending.gov, which tracks federal spending, and the FFATA Subaward Reporting System, which specifically tracks contracts, refer to CGI as the lone bidder for the Obamacare website design award. Each site describes the CGI contract award as the product of “full and open competition,” but CGI is the only bidder listed…

CGI is a relatively new company in the United States. Its Canadian executives grew their corporate U.S. presence through major acquisitions of U.S. companies…

The first indication of questions of CGI performance and pricing came in February 2010 when the firm protested a $230 million CMS contract award to Computer Sciences Corp. Inc. In a sharp rebuff to CGI in November 2010, General Accountability Office acting counsel Linda H. Gibson denied the CGI protest.

In doing so, she noted that CSC’s bid was $148 million versus CGI’s bid of $258 million. When CMS modified the terms of its proposal, CSC was still substantially lower, coming in at $223 million versus CGI’s price tag of $395 million.

Worse, Gibson noted that at the time CMS officials had only rated some of CGI’s previous services as “fair.” …

As the Examiner previously reported, CGI in Canada also suffered embarrassment in 2011 when it failed to deliver on time for Ontario province’s flagship project a new online medical registry for diabetes patients and treatment providers.

Ontario government officials cancelled the $46.2 million contract after 14 months of delay in September 2012. Ontario officials currently refuse to pay any fees to CGI for the failed IT project.

Just because they aren’t good enough for Canadian doesn’t mean they aren’t good enough for the US of A.

This article was posted by Steve on Tuesday, October 15th, 2013. Comments are currently closed.

2 Responses to “Feds Reviewed Only One Bid For Obama-Care Site”

  1. heykev says:

    Where were Amazon, HP and IBM’s bids? Why is the US out sourcing job on something this costly to Canada?

  2. GetBackJack says:

    Marxist Quebec, to be precise and to the same firm what built and ran Canada’s disastrous Long Gun Registry, to boot. For which CGI was paid each time the database was accessed. Like a good crony should.


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