Obama administration is dumping contractor over Healthcare.gov debacle

Federal health officials are ready to deep-six CGI Federal, the lead contractor behind the Healthcare.gov web site, according to The Washington Post and other outlets.  And, it looks like CGI Federal’s loss may be Accenture’s gain.

The Centers for Medicare and Medicaid Services (CMS) is getting ready  to sign a  $90 million, 12-month contract with Accenture, one of the biggest IT consultancies in the country, after months of problems with the healthcare.gov website and its underlying systems.  The site rolled out October 1 and pretty much fell on its face.

In a statement to USA Today, Aaron Albright, spokesman for the CMS, said:

“We are working with our contract partners to make a mutually agreed upon transition to ensure that HealthCare.gov continues to operate smoothly for consumers … We continually evaluate our needs and remain focused on ensuring consumers have access to affordable, quality coverage, and more than 1.1 million already have enrolled in a private plan in the federal marketplace.”

It’s been a rough couple of months for CGI Federal, which is also facing states over their own insurance web sites.

While there have been apparent improvements to the site’s performance, the whole rollout was a huge PR problem for President Obama, who made healthcare reform a priority for his second term.