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White House Reportedly Dismissing Key Healthcare.gov Contractor
Nerval's Lobster writes "Months after a problem-riddled rollout of the Healthcare.gov Website, the White House is dismissing a key contractor, CGI Federal, that built much of the portal, according to The Washington Post. The newspaper suggested the federal government is on the verge of signing a new contract with a replacement, Accenture, which has some experience in building online health-insurance portals on the state level. 'We are in discussions with potential clients all the time but it is not appropriate to discuss with the media contracts we may or may not be discussing,' an Accenture spokesperson is quoted as saying. Unnamed sources 'familiar with the matter' informed the Post of CGI Federal's dismissal, and suggested that it has much to do with continuing anger over the botched introduction of Healthcare.gov, as well as the pace of continuing repairs to the Website. As their contract is due to expire anyway at the end of February, government officials reportedly decided that it was the perfect time to pull the plug with a minimum of legal ramifications."
Holy fucking shit we're fucked.
Accenture does a fairly good job with contract development and support. This doesn't seem to be a bad call.
You can add another 9 months or more to allow whatever new contractor to take over the code base or start anew. And by the time, if ever, it is fully functional we can be sure the direction will have changed again.
What I'd like to know is which taxpayers agreed on spending their taxes on this? The only citizens I found supporting this are those who do not pay income taxes.
And the next question is will these guys do any better?
I've been involved in contracting with governments, and failures of projects are as often as not caused by the incompetence of the government people and their inability to understand what they want, but then blamed on the contractors who couldn't make the system do what it needed.
As is always the case, some times the devil is in the details, and just because the project failed, doesn't mean the people blamed for it actually were the ones who made the project fail.
Sometimes, it just means it's easier to blame the contractor, when in fact the client was completely inept.
CGI has already received their $678 million dollars. Let's throw some more money at it to see if someone else can fix it now.
... but I don't think firing everyone in charge of a massive project does a lot of good when it you're trying to make it work.
It's not just the federal government (healthcare.gov) that's fucked this up; state exchanges (like Covered California, supposedly on the forefront of things, to say nothing of Oregon's health exchange, who, to put it kindly, isn't at the top of the heap) have also fucked this up.
But it's not just the governments that have fucked this up. The private insurers have fucked this up beyond all recognition. Anthem's web-based payment system was unable to accept payments during the last week of December. Customers who signed up weeks before the deadline weren't billed until the new year. Multi-hour wait times for humans have resulted in Anthem's CA PR-bot being inundated with complaints.
You don't have insurance until you actually pay. This is difficult when the insurance company itself refuses to accept payment.
Who cares if they get dismissed a few weeks before their contract expired. Do they still get paid for the steaming pile of shit they created? Absolutely. Will they continue to get government contracts after this blows over? Absolutely.
This is a PR move.
From the congressional testimony, http://www.cnn.com/2013/10/24/politics/congress-obamacare-website/:
... an end-to-end test conducted within two weeks of the launch caused the system to crash. She said it was up to CMS to decide on proceeding with the rollout."
"In the first detailed account of what happened, officials of four contractors involved in the website creation described a convoluted system of multiple companies operating separately under the oversight of CMS, a part of the Department of Health and Human Services. Each said their individual components generally performed as planned after internal testing, but all conceded that CMS failed to conduct sufficient "end-to-end" testing of the entire system before the launch
"... blamed a decision by CMS within two weeks of the launch to require users to fully register in order to browse for health insurance products, instead of being able to get information anonymously, as originally planned."
The preceding should not be interpreted to mean that the contractor did good work. That may have been a problem as well. My point is that government officials were basically sabotaging their project through mismanagement. It appears that politicians were in control.
When you're tired of screwing it up like amateurs, bring in Accenture so you can screw it up like professionals!
My firm has made a lot of money cleaning up Accenture's disasters. It's a living.
So while Accenture was originally based in Bermuda, they've since moved their corporate HQ to Ireland. Could we at least pick a vendor incorporated in the U.S.?
Software Shouldn't Suck
E-mail: frank at jacquette dot spamless com (remove the spamless!)
From what I've heard and read over the years, off the top of my head:
1) Software has more complexity than most everything else; big systems more so. Software can change faster and expectations change faster; it's not a machine that is going to be used for decades and needs to remain similar over that time for maintenance reasons.
2) 2 year cycles where political changes result in different pressures, demands, etc. I've heard this is a BIG problem with government projects from multiple sources. A lot of the time that new "oversight" is anything but a smokescreen for an agenda... sometimes it is intentionally to derail the process (for example, to make room to add another contractor.)
3) Moving targets! Specifications are not detailed enough and/or they change during development - especially across the 2 year political cycles. These regulations they pass can take a year just to be legally codified into enough detail to be useful and even then implementing it in software involves lawyers and additional decisions / interpretations in order to implement it. Then you have the legal cases which decide things that cause changes as well...
4) Short deadlines, high demands. This was a 5 year project and they had about 2-3 years of time and charged more money but throwing money at development doesn't speed it up with the same level quality as normal project pacing.
5) Consultants are paid by TIME not success. Ask anything you want, they'll say yes and just bill more hours. Failure just means more hours and successful completion is not a big motivation.
6) The more contractors who have to work together the more troubles are created.
7) The more governments and gov departments, the more hurdles you have. Like contractors but worse; especially, if those governments are not cooperative, competent, or responsive. Many state governments and politicians have been trying to harm this project.
8) Contracts, renewals, punishments are purely political, NOT results oriented. Failure only delays you until the next contract you bribe your way into - if you even end up fired at all. This company was probably #1 in getting contracts and not in their services provided; they'll get plenty of future contracts and probably do nothing to improve the quality of their services... as they likely did in the past. The entire political process is a huge target for attack by contractors; it's best to do it in house than contract to sufficiently large contractors who can manipulate the process.
9) Metrics. Measurements of success or failure are purely political. Even with contractual metrics specified upfront, politics trumps all reason or law. Specific goals can be met but general ones can be grandstanded -- or design flaws that were approved or demanded can be shifted from the actual culprits to the contractors.
10) Lawyers. Involved all over. If not the root of all evil, they are right afterwards. Don't award corp X the contract, get sued by corp X. Fire corp Y for failure to deliver, get sued by corp Y or the gov sues corp Y... Need a decision to move forward with some implementation detail? must run it by the lawyers 1st... that could end up in legal battles with multiple parties before being resolved and I'm not saying these legal battles all take place in court.
Democracy Now! - uncensored, anti-establishment news
In a company of 280,000+ employees, Accenture has the capacity and expertise to make the IT side of the government healthcare offerings work.
Pull the other one.
Most of Accenture's tech employees are Indians with inflated (or fraudulent) credentials.
By design / sabotage... http://thinkprogress.org/economy/2011/09/28/330524/postal-non-crisis-post-office-save-itself/
"... what has been lost in the political debate over the Post Office is why it is losing this money. Major media coverage points to the rise of email or Internet services and the inefficiency of the post model as the major culprits. While these factors may cause some fiscal pain, almost all of the postal service’s losses over the last four years can be traced back to a single, artificial restriction forced onto the Post Office by the Republican-led Congress in 2006.
At the very end of that year, Congress passed the Postal Accountability and Enhancement Act of 2006 (PAEA). Under PAEA, USPS was forced to “prefund its future health care benefit payments to retirees for the next 75 years in an astonishing ten-year time span” — meaning that it had to put aside billions of dollars to pay for the health benefits of employees it hasn’t even hired yet, something “that no other government or private corporation is required to do.”
As consumer advocate Ralph Nader noted, if PAEA was never enacted, USPS would actually be facing a $1.5 billion surplus today:
By June 2011, the USPS saw a total net deficit of $19.5 billion, $12.7 billion of which was borrowed money from Treasury (leaving just $2.3 billion left until the USPS hits its statutory borrowing limit of $15 billion). This $19.5 billion deficit almost exactly matches the $20.95 billion the USPS made in prepayments to the fund for future retiree health care benefits by June 2011. If the prepayments required under PAEA were never enacted into law, the USPS would not have a net deficiency of nearly $20 billion, but instead be in the black by at least $1.5 billion."
Where did that come from?
"Individual income taxes and payroll taxes accounted for 82 percent of all federal revenues in fiscal year 2010. Corporate income taxes contributed another 9 percent. Excise taxes, estate and gift taxes, customs duties, and miscellaneous receipts (earnings of the Federal Reserve System and various fees and charges) made up the balance."
-- What are the federal government’s sources of revenue?
Nobody's ever shown they are actually "buddies". Prominent Republicans have also gone to the same school at the time, and probably bumped into them at times. Does that make them "cronies" also? Let's not sling mud without solid evidence.
Table-ized A.I.
Its really funny you cannot answer that question yourself....