Current State Jeopardizes Obamacare

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The Centers for Medicare and Medicaid Services (or, CMS) lost faith in CGI’s ability to create a fully functioning website and marketplace for health insurance in mid-December, a federal document states. The document, prepared by CMS, the Department of Health and Human Services (or, HHS) and the Office of Acquisition and Grants Management, explains why a new contractor is necessary for the development of the federal exchange and As it outlines the case for awarding a contract to Accenture Federal Services, it highlights the shortcomings of the original contractor, CGI.

To award Accenture the $91.1 million dollar, 1-year contract, the case needs to be made that the circumstances call for a process other than full and open competition. The federal agencies explain that there are certain tasks that must be finished prior to March 31, and the CGI will be unable to complete them.

Further, if the regular rules applied, by the time a contract was awarded, the needed work would not be completed until September 2014. It is important the March 31 deadline be met, because that is when open enrollment for federal marketplace insurance ends. After that, people without insurance can be subjected to a penalty.

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