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$292 Million Down The Drain: White House Fires Main Obamacare IT Contractor

Tyler Durden's picture


Proving once again that if you want something done wrong, and preferably at massive cost overruns, then just leave it to the government, moments ago news broke that the main IT contractor behind the embarrassment that is - CGI Federal - has been fired. Who could possibly foresee this? Well, anyone who had actually done some diligence on the clusterfuck that is CGI Federal, and which as WaPo profiled some time ago, "is filled with executives from a company that mishandled at least 20 other government IT projects, including a flawed effort to automate retirement benefits for millions of federal workers, documents and interviews show." Make that 21. "A year before CGI Group acquired AMS in 2004, AMS settled a lawsuit brought by the head of the Federal Retirement Thrift Investment Board, which had hired the company to upgrade the agency’s computer system. AMS had gone $60 million over budget and virtually all of the computer code it wrote turned out to be useless, according to a report by a U.S. Senate committee." Sounds like the perfect people to hire in order to make a complete disaster out of the Obamacare portal - almost as if by design.

But the best news? Obama's little tryst with CGI Federal cost US taxpayers only $292 million. As Vanity Fair revealed recently, "According to congressional testimony, CGI stands to be paid $292 million for its work on" And since the CGI replacement will eventually redo everything from scratch, this is $292 million that Obama may have as well burned.

We jest, but the incest between the Obama administration and CGI will one day be probed. According to recent revelations the ties run deep:

That lack of expertise explains why in building, the government turned to industry contractors; in particular, to CGI Federal, a subsidiary of CGI Group, a Canadian company. To those uninitiated in the dark art of government contracting, it seems scandalous that CGI, a company most Americans had never heard of, a company that is not located in Silicon Valley (where President Obama has plenty of Internet superstar friends who could have formed a dazzling brain trust to implement his signature legislation) but rather in Montreal, could be chosen as the lead contractor for the administration’s most important initiative. While right-wing news outlets have focused on the possible relationship between Toni Townes-Whitley, senior vice president for civilian-agency programs at CGI Federal, and Michelle Obama, both of whom were 1985 Princeton graduates, CGI’s selection is probably more an example of a dysfunctional system than it is a scandal. “A lot of the companies in Silicon Valley don’t do business with the government at that level [the level required for federal contracting],” explains Soloway. “It is very burdensome, and the rules make it very unattractive.” Indeed, government contractors have to meet a whole host of requirements contained in a foot-thick book, including cost accounting and excessive auditing, to prove that they are not profiting too much off the American taxpayer. Hence, there tends to be a relatively small, specialized group of companies that compete for this work, even on such critical matters as

Actually it is a scandal. And it is a bigger scandal that at least $292 million in taxpayer cash was literally flushed down the drain and all we have to show for it is a website that crashes when the seemingly impossible happens, and more than a few hundred people try to log in at the same time. Then again perhaps, since it's no longer 1993, someone in the administration should take responsibility for this? Or maybe it was just Bush's fault again (and it snowed in December).

Keep in mind, CGI's coding disaster was so epic, there actually is a flowchart indicating just how many errors in there are.

So with CGI out of the picture, who will take over administration of the Obamacare portal? WaPo has the answer: "Federal health officials are preparing to sign a 12-month contract worth roughly $90 million, probably early next week, with a different company, Accenture, after concluding that CGI has not been effective enough in fixing the intricate computer system underpinning the federal Web site,, the individual said."

And this pearl: "Because of time constraints, CMS is awarding the Accenture contract on a sole-source basis, according to the person familiar with the decision."

So is that what kickbacks to Michelle Obama are called now?

We can be sure of one thing: this replacement will be an even more epic disaster and will ultimately result in over a billion taxpayer dollars being spent on a program that was doomed to failure from the beginnin regardless.

Accenture, which is one of the world’s largest consulting firms, has extensive experience with computer systems on the state level, and it built California’s new health insurance exchange. But it has not done substantial work on any federal health-care program.

There is a small chance Accenture won't be as much of a debacle as CGI. Keep in mind that the government is very familiar with the consulting company's skill se: after all the DOJ itself sued it!

The decision to turn to Accenture puts the project in the hands of a government contractor that has significant technological expertise but also signed a high-profile legal settlement with the Justice Department less than three years ago over its contracting practices.  Accenture had one contracting dispute with the federal government that ended up in court, agreeing in September 2011 to pay $63 million to settle a Justice Department lawsuit alleging that it improperly benefitted from recommending specific hardware and software as part of government contracts, as well as inflating prices on contracts and distorting the federal bidding process.

In retrospect who are we kidding: Accenture is certainly the best replacement to CGI...  if the intention is to keep bleeding the government's taxpayer funded coffers dry. And why not: if said coffers run out of money, the Fed can just print some moar. Which, as it turns out, is the endgame: as we reported earlier, Jeffrey Lacker explicitly said that the Fed is now looking at the impact on the economy from Obamacare... or else QE5.

Not to be confused with Q.E.D.


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Fri, 01/10/2014 - 14:18 | 4320258 HedgeAccordingly
HedgeAccordingly's picture

a job lost that is Bullish. actually.

Fri, 01/10/2014 - 14:19 | 4320262 VD
VD's picture


Fri, 01/10/2014 - 14:23 | 4320281 ACP
ACP's picture

Somebody actually got fired? Holy shit!

I guess being a friend of Moochelle isn't as good as being a friend of Barry.

Fri, 01/10/2014 - 14:28 | 4320304 666
666's picture

How about providing a list of the new multimillionaires created with the taxpayer dollars wasted on this clusterfuck where no one is accountable or imprisoned.

Fri, 01/10/2014 - 14:58 | 4320425 Handful of Dust
Handful of Dust's picture

"Dear Valued Client,

Sorry you are dissatisifed with our software. Your $239 Million refund check is in the mail.

Please feel free to hand us another multimillion dollar contract when The Hoi Poloi are not looking.


Your Fat Cat Wealthy Gubmint Contractor"



Fri, 01/10/2014 - 14:58 | 4320452 Keyser
Keyser's picture

The kicker is the, one of the largest IT CRM firms on the planet, offered to build the ACA for FREE... That's right, FREE... This included building the site, hosting it, performing maintenance and updates for FIVE FUCKING YEARS, FOR FREE!!!!

The Obama administration declined... Draw your own conclusions... 


Fri, 01/10/2014 - 15:06 | 4320477 negative rates
negative rates's picture

It was good for someone's economy, there would have been a crisis without it, we needed jobs, he told me to do it, it's cramers fault, crisis bitches!* 

Fri, 01/10/2014 - 15:10 | 4320493 MarsInScorpio
MarsInScorpio's picture

Isn't this the company that had Moooochele's sorority sister as the contact to close the deal?


The First Wookie strikes again.


Fri, 01/10/2014 - 16:54 | 4320866 Manthong
Manthong's picture

Obamacare and its broke-dick web site is a two cycle engine that has been run on straight gas until seizure.

But then that’s what they wanted all along because the traitors in con-gress just want the insurance companies out of the way so that they can torture the nation, prolong the pain and become as successful as the UK’s NHS.

Fri, 01/10/2014 - 17:09 | 4320909 lakecity55
lakecity55's picture

Clearly a job for Vandelay Enterprises.

George? Pick up the phone.

Fri, 01/10/2014 - 20:16 | 4321379 Richard Chesler
Richard Chesler's picture

Nobody ever said Obozo was a savvy businessman.

Fri, 01/10/2014 - 15:32 | 4320573 malek
malek's picture

What a bunch of amateurs.
If they had offered the same for $500 million plus $100 million annual maintenance costs, the administration would have fallen over itself to give them the contract!

Fri, 01/10/2014 - 16:46 | 4320831 czardas
czardas's picture

Playing the Devil's Advocate, I know one of the consultants in the early stages (he resigned in frustration and got another job - he was American) and what he describes is sheer chaos - hourly changes from DC, interference from the feds, inabilty to get answers.  Just interpreting the law - converting the writing to software - took months since no one had any idea how to translate the legal gibberish. Some things were never explained or decided.   Then there was the inability to communicate between groups, the lack of a central coordinator, the refusal to volume test in order to get good results, connections between Group A who supplied the answer to Group B (who accepted it unquestioningly), the "back end" that was always going to be written "soon", the rush to put the crap in production despite objections from seasoned analysts, then (as he relates from colleagues) the wild scramble to "fix" the thing....did I leave out anything? 

Professionally, it will be difficult to step in and take over.  It will take time to understand system architecture and all the problems.  It's a job I would not relish. 

Fri, 01/10/2014 - 21:29 | 4321534 malek
malek's picture

I first thought you were talking about a SFDC consultant, then it became clear you were not.

I do ETL Development for a living and I wouldn't touch that mess with a ten foot pole, neither in new nor existing status. The biggest part of one's time invested only in CYA from day one, thanks but no thanks.

Fri, 01/10/2014 - 15:58 | 4320680 overexposed
overexposed's picture

I'm usually all for blaming Obama for everything, but in this particular case, the Federal government is forbidden BY LAW from accepting pro-bono work.  The logic behind that theory is, unless a monetary value changes hands for work done, the Federal government wouldn't have grounds to sue in the event that something goes wrong.  I'm sure at a certain level, that makes sense -- but DC's been way past whatever "certain" level that was for years now.

Sun, 01/12/2014 - 19:38 | 4325616 Rafferty
Rafferty's picture

I worked for many years as a consultant specialising in trying to rescue major IT projects gone bad.  God, how I loved Accidenture, sorry, Accenture!  I could have worked for ever cleaning up after them.  The amazing thing is, no matter how badly they screwed up they continued to win government business regardless.  I could never figure out why (cough).

Fri, 01/10/2014 - 16:22 | 4320743 trader1
trader1's picture

Keyser, just for amusement purposes...

are you a digital marketing intern for or just another cog in the machine?

Fri, 01/10/2014 - 15:11 | 4320498 insanelysane
insanelysane's picture

The didn't get fire so much as they made $292 mill on the initial contract and it wasn't renewed.  They still walk away with a shit ton of money and delivered something worth about 10 grand.  

Fri, 01/10/2014 - 15:57 | 4320674 Harbanger
Harbanger's picture

$292 million.  That's almost a million dollars they could have given to every person in America.

Fri, 01/10/2014 - 16:36 | 4320791 czardas
czardas's picture

Only if the US has 292 people.  LOL

Fri, 01/10/2014 - 19:38 | 4321247 dark pools of soros
dark pools of soros's picture

that's the goal..remove the goyim!

Fri, 01/10/2014 - 20:17 | 4321381 JLee2027
JLee2027's picture

He must have been one of the website designers. No wonder it could only handle 10 people at a time. 

Fri, 01/10/2014 - 16:36 | 4320793 Apocalicious
Apocalicious's picture

um, think your math's a little off there...

Fri, 01/10/2014 - 16:59 | 4320877 Harbanger
Harbanger's picture


Fri, 01/10/2014 - 16:43 | 4320817 Wannabee
Wannabee's picture

You're on to something. Give everyone $1m in HSA account. Only can be used for healthcare. Use it or lose it. Get fat, need rascal scooter, countless MRI's, smoke cigs, draw down the $1M before end of life, your loss.

In the long run, much cheaper for taxpayers than the cluster we have now.

Fri, 01/10/2014 - 19:40 | 4321253 dark pools of soros
dark pools of soros's picture

only if you curb it over say 30 years...  cause if everyone is able to spend $1million the first doctors visit will be $900,000 since just cuz  (see also tuition)

Fri, 01/10/2014 - 15:38 | 4320593 Uncle Sugar
Uncle Sugar's picture

They will follow the ACORN model.  Change their name to ICG and Obomber will hire them on to write the new federal voter tabulation application.  Winning.

Fri, 01/10/2014 - 15:50 | 4320651 Handful of Dust
Handful of Dust's picture
"More Millionaires in Congress Than Ever Before"

Fri, 01/10/2014 - 21:15 | 4321510 Buck Johnson
Buck Johnson's picture

Moochelle the Wookie just couldn't keep her "friends".

Fri, 01/10/2014 - 15:19 | 4320518 Hippocratic Oaf
Hippocratic Oaf's picture


Shit, man, that's just Arod numbers.

Nothing to see here.......move along.

Fri, 01/10/2014 - 16:23 | 4320747 Kirk2NCC1701
Kirk2NCC1701's picture

They've gone from bad-ass (Breaking Bad) to smelly-ass (Breaking Wind).  Get Heisenberg!

Seriously though, what passes for Program Management and Project Management is a joke in many cases.  It's not so much of "What you know", but "Who you know and who you blow" that counts: It's one big Circle Jerk, one big Cluster-Fuck.

Sat, 01/11/2014 - 00:23 | 4321980 StychoKiller
StychoKiller's picture

Captain, can't you just like fire a salvo of photon torpedoes into Washington DC?  We'll make it worth your while!

Fri, 01/10/2014 - 14:33 | 4320340 Jannn
Jannn's picture

Dutch Central Bank Tight-lipped About Gold Policy

Fri, 01/10/2014 - 14:59 | 4320453 USA USA
USA USA's picture

I can't write code either, but I'll do it for free!

Fri, 01/10/2014 - 15:01 | 4320466 y3maxx
y3maxx's picture

...Why not just hire out an Israeli IT outfit?
Israel already controls most everything else in the USSA.

Fri, 01/10/2014 - 20:10 | 4321358 Bazza McKenzie
Bazza McKenzie's picture

They're all too busy working where the real money is made:  Wall Street and NSA.

Fri, 01/10/2014 - 15:48 | 4320643 NOTW777
NOTW777's picture

waiting for ZH to blame Bush

Fri, 01/10/2014 - 14:21 | 4320270 devo
devo's picture

They should have just used drupal and done it for 10 bucks.

Fri, 01/10/2014 - 14:33 | 4320335 Grande Tetons
Grande Tetons's picture

I miss the old days when Presidential scandals involved blowjobs, arms deals and movie icon fucking. 

This is too high tech for me. 

Fri, 01/10/2014 - 14:21 | 4320272 starman
starman's picture

Were they cripted in Mexican or Chinese?

Fri, 01/10/2014 - 14:22 | 4320277 SAT 800
SAT 800's picture

Sounds like the programmers who wrote the code for the Climate Forecasting Models for UN's global warming scam. they were hacked and; surprise, surprise, the programs turned out to be childish nonsense. How amazing.

Fri, 01/10/2014 - 15:37 | 4320590 Bawneee Fwank
Bawneee Fwank's picture

"Childish Nonsense"  Funny after hearing about Obamas "Promise Zones" yesterday I told a buddy that the US is being run by pre-school teachers.  Shit is getting so fucking pathetic, I can not even stand to read or hear about this juvenile horseshit anymore. 

Fri, 01/10/2014 - 14:23 | 4320280 SAT 800
SAT 800's picture

I guess they'll just have to outsource it to Pakistan.

Fri, 01/10/2014 - 14:45 | 4320389 Keyser
Keyser's picture

No, the work will be done in Mumbai. 

Fri, 01/10/2014 - 14:23 | 4320283 ultraticum
ultraticum's picture

About 3 hours of tapered QE.  Pocket change, my friends.

Fri, 01/10/2014 - 14:23 | 4320284 icanhasbailout
icanhasbailout's picture

I get no credit for reporting on this (exclusively, before anyone else had it) 2 months ago?


Mostly here:

with some more here:

and here:


Give kitty some hat tip love please!


Fri, 01/10/2014 - 14:41 | 4320373 icanhasbailout
icanhasbailout's picture

Oh also, the chart is missing a note the #1 security problem regarding - the fact that the highly insecure website can be used to data mine almost any major government database! For all we know, this thing could have been mining SS, VA, IRS, DHS etc. databases for months now, and might still be doing it!

Fri, 01/10/2014 - 14:24 | 4320286 honkadoo
honkadoo's picture

One can only imagine how those client conference calls went between HHS and CGI.

Fri, 01/10/2014 - 15:12 | 4320499 ElvisDog
ElvisDog's picture

Are you kidding? They're probably all friends. They asked each other about their spouses and kids and then got down to damage control planning. After the meeting, they all went out to dinner (at taxpayer expense).

Fri, 01/10/2014 - 14:24 | 4320288 darteaus
darteaus's picture

CGI does have a proven business model.

Fri, 01/10/2014 - 14:48 | 4320407 Keyser
Keyser's picture

They learned it from the US governemnt.


1. Make wild promises in order to get the job

2. Never deliver on those promises 

3. Grossly over budget on every project

4. Zero accountability


Fri, 01/10/2014 - 15:29 | 4320561 trader1
trader1's picture

wait a second, that's practically every enterprise IT services contractor.  

Fri, 01/10/2014 - 14:26 | 4320298 Al Huxley
Al Huxley's picture

It's a long tedious process to get a government contract, but if you're incompetent or a crook, its worth the time and effort, as the premium on the rate you can charge and the lack of oversight generally make for very lucrative billing - particularly when you consider the fact that normal qualifications like 'capable of delivering a working product' aren't applicable in government deals.  They may have staffed this development with highschool students, or sociology grads, or people who'd been working at 7-11, or Indian farmers, and paid them $8/hour while charging out at $250.  Pretty lucrative premium, well worth the transient infamy.

Fri, 01/10/2014 - 14:39 | 4320364 NoDebt
NoDebt's picture

"You'll never work in this town again!"

They'll have another contract in 3 months.

Fri, 01/10/2014 - 14:48 | 4320408 Al Huxley
Al Huxley's picture

...and probably with the Federal government - 'I know we probably shouldn't hire them, but they did such a nice presentation - did you see how they used our logos!!?  And besides, they are on the 'certified vendor' list...'.

Fri, 01/10/2014 - 16:11 | 4320718 insanelysane
insanelysane's picture

We must work at the same company because I've been next to that upper level manager because some company was able to right click on the company logo, copy it, and then paste it into their powerpoint.  Tech savy.  We need to work with this company.

You made my day and night!

Fri, 01/10/2014 - 21:10 | 4321501 angryBuddhist
angryBuddhist's picture

"They may have staffed this development with highschool students, or sociology grads, or people who'd been working at 7-11"


More like an ad posted at the local laundromat with tear-off phone numbers . . .

"IT workers wanted. No experience necessary. Excellent working conditions and top pay for the right individual." - leave message

Fri, 01/10/2014 - 14:28 | 4320307 bigrooster
bigrooster's picture

"Because of time constraints, CMS is awarding the Accenture contract on a sole-source basis, according to the person familiar with the decision."


WTF...Accenture is not even a US company!  Those fuckers moved their headquarters off shore to avoid taxes!

But hey the IRS is stocking on security forces to make sure that us little people pay our taxes.

Fri, 01/10/2014 - 14:39 | 4320361 Walt D.
Walt D.'s picture

If I am not mistaken,wasn't Accenture (Ass-Enter) the consulting arm of Arthur Anderson who were closed down by federal regulators after the Enron fiasco?

Fri, 01/10/2014 - 14:30 | 4320317 stant
stant's picture

Obamacare the video game. ,It will be a lot like fallout but without the bottle caps

Fri, 01/10/2014 - 14:35 | 4320345 Walt D.
Walt D.'s picture

"Grand Theft Health Care"

Fri, 01/10/2014 - 14:42 | 4320377 Billy Sol Estes
Billy Sol Estes's picture

No it will be more like the STALKER series with brain scorchers in a 4 mile dead zone around DC

Fri, 01/10/2014 - 15:01 | 4320465 DannoH
DannoH's picture

But I still have not collected 50 of the Star Sunset Sasparilla bottle caps!

Fri, 01/10/2014 - 15:26 | 4320547 MisterMousePotato
MisterMousePotato's picture

More like COD where gov (not terrorists?) grope people to death in the airport terminal.

Fri, 01/10/2014 - 17:20 | 4320935 John_Coltrane
John_Coltrane's picture

A typical game scenario:

You enter the door marked wart removal and wake up to find out your kidney is gone and you've got a bill for $100K.

Let's get this game production going.  Monty Python can serve as (very competent) consultants!

Fri, 01/10/2014 - 14:30 | 4320319 ultraticum
ultraticum's picture

"It also contacts the company Equifax to verify the consumer's income."

Did I read that right?  Does the IRS (or the States) share personal income information with Equifax?

Fri, 01/10/2014 - 14:43 | 4320382 NoDebt
NoDebt's picture

Experian, Equifax and TransUnion.  The holy trinity.  Plugged into everything.  I doubt they know your (exact) income but they know your credit history for sure.  In fact, Obamacare can't verify your IDENTITY if they don't have a file on you (i.e. you have no credit history or you gave the wrong information).


Fri, 01/10/2014 - 14:38 | 4320320 Kaiser Sousa
Kaiser Sousa's picture

F         O        R       W        A       R       D........


Fri, 01/10/2014 - 14:31 | 4320326 taketheredpill
taketheredpill's picture



For $300 MM X 2 they could have hired 20,000 people for a year and had the work done manually. 

Fri, 01/10/2014 - 14:31 | 4320328 notadouche
notadouche's picture

Curious why a US tech company was not chosen to start with and is again not chosen this round and why there is no real outcry.

Fri, 01/10/2014 - 14:41 | 4320374 ultraticum
ultraticum's picture

Moochelle has classmates.

Fri, 01/10/2014 - 14:33 | 4320333 Oleander
Oleander's picture

Massachusetts is suing them. 28,000 people have been thrown into Mass Health (medicare) system because the software will not work.

No way to find out who qualifies for what. Applicants cannot pick a plan and pay.  Everyone who applied through the Health connection was mailed a letter with a temporary ID# for MassHealth.  Need to call doctors and find one who will take it while they wait to actually get health insurance. I forsee an uptick in ER visits due to the fact that calling around and telling the docs you have a tepmorary ID# will not get you far.

I am one of these people. I live on the border w/ RI and the closest medical facilites are in RI. I know which plan I want but cannot get it until they get this  staightend out.  I will pay cash or goto the ER before I start finding new doctors for a hopefully temporary mess.

Fri, 01/10/2014 - 14:33 | 4320334 Al Huxley
Al Huxley's picture

That's odd, CGI stock is down sharply today - I would have thought a big spike would be in order on this news.

Fri, 01/10/2014 - 14:33 | 4320337 GolfHatesMe
GolfHatesMe's picture

So all CGI employees are now out of the labor force?

Fri, 01/10/2014 - 14:45 | 4320390 TrustbutVerify
TrustbutVerify's picture

Probably not.  They're likely working on other govermment projects. 

Fri, 01/10/2014 - 15:13 | 4320501 GolfHatesMe
GolfHatesMe's picture

Just a hope

Fri, 01/10/2014 - 14:52 | 4320422 Keyser
Keyser's picture

Canada's job numbers today reveal a loss of 45,000 jobs... 


Fri, 01/10/2014 - 15:39 | 4320602 Kayman
Kayman's picture


Go to  But thank goodness 18,000 government employees were hired !

Fri, 01/10/2014 - 15:14 | 4320506 insanelysane
insanelysane's picture

The way these things work is that the main company subcontracts the actual work so all of those people are just switching over and being subcontracted by Accenture.  The hope is that Accenture supervises these same developers better.

Fri, 01/10/2014 - 14:34 | 4320341 taketheredpill
taketheredpill's picture



For a Govie cluster-fuk a 10X factor is a better guesstimate for the final pricetag.  So $1B is likley nearer the lower end of the range for this fiasco.

Fri, 01/10/2014 - 14:39 | 4320355 Magnix
Magnix's picture

$292 million for that web project is CRAZYYY. Im a web developer and the largest and most complicated web project we've worked on was like $250K.

Fri, 01/10/2014 - 14:54 | 4320434 Keyser
Keyser's picture

We have line of business applications where total investment is over $20 million, but these are apps that have been around for 10 years with constant updates and enhancements. Millions of lines of code. CGI is so full of shit their eyes are brown. 


Fri, 01/10/2014 - 15:08 | 4320487 Magnix
Magnix's picture

CGI - yeah tell me about it! :-)

Fri, 01/10/2014 - 16:24 | 4320751 trader1
trader1's picture

i knew it!

you do work for ;-)

Fri, 01/10/2014 - 16:50 | 4320845 AgentScruffy
AgentScruffy's picture

I'm in the web biz too--and yeah, it's an insane figure. We should be getting holographic sign-up experiences and ability to teleport to the nearest federal office for that amount.

Fri, 01/10/2014 - 20:06 | 4321344 Bazza McKenzie
Bazza McKenzie's picture

It's the cost of all the time that goes in dealing with bureaucrats and having to cope with continuously changing requirements.

Fri, 01/10/2014 - 14:39 | 4320362 NIHILIST CIPHER

My friend I posted about before Christmas, to date still does not have coverage. Her last quote was $90 per month and her latest quote is $729 per month.........the kicker is that they won't complete the transaction and take her money. She talked to an ACORN (type) half-wit that seriously could not read well  AND that person had to be helped in writing down the amount  $1,500.00 (to fill in income blank).  So far my friend has been on the hook for all of her meds. Have to wonder how many are in the same boat. Forward progressives!

Fri, 01/10/2014 - 14:44 | 4320388 Billy Sol Estes
Billy Sol Estes's picture

$729 a month?

Fri, 01/10/2014 - 15:32 | 4320575 MisterMousePotato
MisterMousePotato's picture

Yeah. That's cheap, doncha know? It leaves the person with over $270 month for food, housing, etc. But think of the peace of mind that having health insurance will bring. Priceless.

Fri, 01/10/2014 - 14:52 | 4320421 SmackDaddy
SmackDaddy's picture

"So far my friend has been on the hook for all of her meds. Forward progressives!"

Do you realize how fucking stupid you sound?  You cant complain about it if you've chosen to depend on it.

Fri, 01/10/2014 - 15:52 | 4320660 NOTW777
NOTW777's picture

look the loyal acorn ZHers are marking you down

Fri, 01/10/2014 - 17:18 | 4320931 jerry_theking_lawler
jerry_theking_lawler's picture

Tell your friend this from me, 'Elections have consequences'.

Fri, 01/10/2014 - 14:39 | 4320365 syntaxterror
syntaxterror's picture

OMG, that loser actually fired someone? Wow. Start the presses.

Fri, 01/10/2014 - 14:40 | 4320367 mayhem_korner
mayhem_korner's picture



$292 million equates to what, 6 hours of Fed government deficit creation at the current pace?

Fri, 01/10/2014 - 14:41 | 4320375 TrustbutVerify
TrustbutVerify's picture

And let's not forget the "Obamacare portal" problems are the tip of the iceberg.

Fri, 01/10/2014 - 14:42 | 4320378 Rising Sun
Rising Sun's picture

a fucking french, quebec-canada based IT firm - CGI - why the flying fuck were these french fuckers tampering with barry-care to begin with???


nice job Barry - great choice in going with American - you fuck

Fri, 01/10/2014 - 14:48 | 4320410 Walt D.
Walt D.'s picture

$292 million - that would create 292 ObamaJobs in the US.

Fri, 01/10/2014 - 14:57 | 4320447 Keyser
Keyser's picture

The kicker is the, one of the largest IT CRM firms on the planet, offered to build the ACA for FREE... That's right, FREE... This included building the site, hosting it, performing maintenance and updates for FIVE FUCKING YEARS, FOR FREE!!!!

The Obama administration declined... Draw your own conclusions... 


Fri, 01/10/2014 - 16:25 | 4320640 trader1
trader1's picture

are you sure?  

i haven't been able to find a reputable source mentioning that...

even if it's a true ("or a bullshit would have done it, but only mention after the media fiasco") statement from marc benioff, then it's simply one company taking advantage of an opportunity to advertise their services.  


that communication was not targeted at you, but at CIOs/CTOs who want to "create business value" for their multi-national corporations and think that "cloud" CRM/analytics might be the way to go (because they don't have the internal talent to make it happen).  

Fri, 01/10/2014 - 14:44 | 4320385 Walt D.
Walt D.'s picture

Don't pay them. What are they going to do? Sue the Federal Government. No private company would pay them. No jury would pay them. This looks like another ObamaTheft like Solyndra.

Fri, 01/10/2014 - 15:09 | 4320491 JLee2027
JLee2027's picture

They've already been paid by billing every month. So what the Government will bounce one month on them is the worst they can do.

Fri, 01/10/2014 - 14:50 | 4320415 williambanzai7
williambanzai7's picture

Expect the grotesque FAIL contortions to get more extreme as time passes...

Fri, 01/10/2014 - 14:51 | 4320419 Walt D.
Walt D.'s picture

On second thoughts, $292 million is chump change - Michelle Obama is going to spend much more than that on vacations over 8 years.

Fri, 01/10/2014 - 14:54 | 4320433 newworldorder
newworldorder's picture

None of this really matters. Except for those working at real jobs, its all free money for the 20+ % who are on some form of perpetual welfare most of their lives. It is also funny money for the top 10+ % who are enjoying the gifts of a FED managed economy.

The real victims are the approx., 14% unemployed and the hard working 50+ % Americans who have a job and are one layoff away from losing it. Yet - Our Congressional criters and the Administration are pushing for the legalization of 10 to 15 million undocumented workers from Mexico and Latin America. Workers - who by their Hispanic/Latin heritage and once "legalized" ALL will have Minority Affirmative Action Hiring protections, equal to Black US citizens and ahead of US Born White citizens.

Only in the US can this be happening. Unfortunatly, those that are aware of what is going on, are forced to live under the collective insanity of the sheeple and the low information voters.

Here is a "new idea." If the Congress will legalize the 10 to 15 million undocumented - How about repealing  the Affirmative Action - Minority Status, that all Hispanics currently enjoy - under law.

Fri, 01/10/2014 - 15:46 | 4320633 Kayman
Kayman's picture


And since all government employees-federal, state, city or county get paid out of private sector taxation, it really only matters to the shrinking minority of private sector employees.

Fri, 01/10/2014 - 14:56 | 4320441 NOTaREALmerican
NOTaREALmerican's picture

Hey, come on here.

IT is one of the few Big-Gov and Corporate scams that the semi-austistics and introverts get to participate in. 

Fri, 01/10/2014 - 14:57 | 4320443 rodocostarica
rodocostarica's picture

Wait till the stories about call center scams. After the website blew up they converted over to contracts with call center companies to take calls and walk people through the sign up process since the site did not work. 

I worked in call centers and can tell you it is easy to screw clients over (IE .gov or us taxpayers) with contracts charging per minute per call etc.

Moochelle probably has friends in that business also. What a fucking verguenza as we say here in Costa Rica.

Fri, 01/10/2014 - 15:01 | 4320463 pitz
pitz's picture

Accenture???  I think I just vomited.

Fri, 01/10/2014 - 15:07 | 4320483 JLee2027
JLee2027's picture

Yes. Classic corporate drones. I worked with them in the 1980's when they were Arthur Anderson and again later as "Accenture". Lower scumbags I never saw. Very highly paid, dedicated, and controlling but they make more of a mess than solve things. I know one guy whose wife complained about his commute hours and he packed up left the wife and moved. Idiot. Later caught him searching our Vice Presidents office w/o permission. He talked himself out of it, those guys are good and attached politically. They would do anything to become "partners" in those days...100 hour weeks, unquestionable loyalty, stealing, you name it. No morals at all.

Fri, 01/10/2014 - 16:04 | 4320688 trader1
trader1's picture

i think you described all consulting firms.  not just accenture.

not everyone working in those firms is like that these days.  

you can be "lucky" as a customer and get a good team that delivers.  this outcome is most closely connected to your organization's ability to critically assess if the guys across the table make a no-BS argument and demonstrate why they are the best of all available options and to sign a deliverables-based SoW that actually addresses the requirements analyzed as necessary to achieve the objectives.    


Fri, 01/10/2014 - 15:02 | 4320468 JLee2027
JLee2027's picture

$292 million to build a website and interfaces. Unbelievable. A dedicated team of 10 could probably do it for 10 million.

Fri, 01/10/2014 - 16:47 | 4320834 AgentScruffy
AgentScruffy's picture

How about the three 20-yr olds who did it for free?

Fri, 01/10/2014 - 15:08 | 4320490 AchtungAffen
AchtungAffen's picture

"Proving once again that if you want something done wrong, and preferably at massive cost overruns, then just leave it to the government, moments ago news broke that the main IT contractor behind the embarrassment that is - CGI Federal - has been fired."

Cognitive dissonance. The goobmint didn't do it, the contractor did it.

Fri, 01/10/2014 - 15:12 | 4320500 sbenard
sbenard's picture

Now they need to fire Obamacare and Obama!

Fri, 01/10/2014 - 15:22 | 4320532 Joebloinvestor
Joebloinvestor's picture

I wonder if this was the result of Barry's "IT CZAR" actually making a difference.

Fri, 01/10/2014 - 15:23 | 4320537 roadhazard
roadhazard's picture

..."stands to be paid".


So it's not been paid for yet.


Several million people have signed up for Obama Care so far in spite of the failure. Amazing

Fri, 01/10/2014 - 15:27 | 4320548 JLee2027
JLee2027's picture

Can we fire the guy who hired these incompetants?

Fri, 01/10/2014 - 15:27 | 4320551 shovelhead
shovelhead's picture

Should have listed to sell the damn insurance at Amazon.

They may lose money but at least the ladies get their 50 Shades of Grey.


Fri, 01/10/2014 - 15:30 | 4320567 jenniewadeguy
jenniewadeguy's picture

Undoubtedly staffed with legions of worthless Indian programmers.  These fookers are absolutley the dregs of the IT world.  Even the so-called smartest and best among them are incredibly inferior to their American and Canadian counterparts.  I have seen it and suffered from it for 20+ years now.


"No way!  It can't be true!  My company hires them because yada yada yada . . ." you say, huh?  Well, welcome to the lie, friend.  They are third world intellects with third world educations and third world ubilities.  Hey, you are on Zerohedge for a reason.  You appreciate exposing a lie, or having one exposed for you.

Fri, 01/10/2014 - 16:16 | 4320717 trader1
trader1's picture


a lot of companies think they can outsmart the vendor in getting a "savings" from them.  you're going to get what you pay for from other companies who are structured in a way whose internal business units/functions are also trying to gain a "savings" from each other.  

Fri, 01/10/2014 - 17:55 | 4321019 jenniewadeguy
jenniewadeguy's picture

Here, here trader1!  IT was commoditized 20 years ago.  We all became a barrel of crude oil, interchangeable for a going price.  Buy your IT on the cheap when and where you can get it.  The Indians played a part in keeping that price down.  But, as I extrapolate something from your comments, we get what we pay for.

Fri, 01/10/2014 - 15:33 | 4320577 tnquake
tnquake's picture

My mother's sister aunt works from home making over $10,000 a month! All this with no real training!! She a contractor for CGI and creates websites, like

Fri, 01/10/2014 - 15:40 | 4320603 jenniewadeguy
jenniewadeguy's picture

Is she Indian?

Fri, 01/10/2014 - 16:16 | 4320733 tnquake
tnquake's picture

No, Kenyan

Fri, 01/10/2014 - 17:49 | 4321005 jenniewadeguy
jenniewadeguy's picture

Well, you have me there.  I have never worked with Kenyans.  Just Russians (fairly good usually), asians (always great but suffer immensely from language barriers) and home grown North Americans (among the best but always with a small percentage of spoilers).

Fri, 01/10/2014 - 15:58 | 4320672 Emergency Ward
Emergency Ward's picture

Like your mother's sister's aunt said, and she must know my co-worker's third cousin's nephew that actually signed up for the ACA Benefit at the CGI-designed www3.healthscare.guv and received a triple-platinum plan for only $9.99 a month, no deductibles or co-pays.  The nephew is tickled pink because they even cover transgender surgery.  An iPhone with a free five-year contract is being offered as a signing bonus.

Fri, 01/10/2014 - 16:46 | 4320830 AgentScruffy
AgentScruffy's picture

Yeah, I think I saw a late night infomercial about how you can make tons working from home for CGI Federal...

Fri, 01/10/2014 - 15:43 | 4320617 Canucklehead
Canucklehead's picture

Accenture is headquartered in Ireland, the land of government efficiency.  Most of their programmers live in India, land of the wage slaves and the Adarsh Housing Society Scam (featuring Devyani Khobragade).

Fri, 01/10/2014 - 18:12 | 4321058 jenniewadeguy
jenniewadeguy's picture

Thanks for the light, eh?  Give me 10 home-grown Canadian programmers including a couple of data base architects and a few network engineers and we would have an Obama Care web portal rivaled by none.


Signed, the angry American.

Fri, 01/10/2014 - 15:43 | 4320619 proLiberty
proLiberty's picture

Infinite money enables infinite government and infinite waste.

But this out-of-thin-air infinite fiat money is not free. On the contrary it comes at a very high cost for at least three reasons.

The first is that the economic resources the fiat money is used to purchase don't materialize out of thin air. The circle is only made complete when it is realized that these economic are paid for by the dilution of the value of every dollar held in every wallet and bank account. It is embezzlement of wealth just as much as when the bartender waters down the liquor.

The second cost is in how it distorts economic signals and thus fools people into making unwise investments. In particular, projects that have large amounts of debt over long time horizons may seem to be sustainable yet are less so when interest rates return to rational levels.

The last cost is the interest on the borrowed money must be repaid, and since government never intends to pay off the debt, that means the taxpayer is never off the hook for paying interest. In a different context, say when consumer advocates complain about how credit card debt multiplies with low payments and lax lending policies, we would say the debtor can never get free of the debt and has become the serf of the lender.

I would also add that since government policy tends to be viewed as some level of moral standard, when government can live beyond its means, some citizens tend to think they can too. None of this is good for the fiscal or moral health of the nation.

Fri, 01/10/2014 - 15:46 | 4320628 Lord Koos
Lord Koos's picture

$300,000,000?  that's about what we spend in a couple of months in Afghanistan.

Fri, 01/10/2014 - 15:51 | 4320655 LawyerScum
LawyerScum's picture

They should have hired Kramerica Industries.

Fri, 01/10/2014 - 15:51 | 4320658 pragmatic hobo
pragmatic hobo's picture

to top it all off CGI isn't even an USA company ... it's a fucking canadian company!

Fri, 01/10/2014 - 20:00 | 4321324 Bazza McKenzie
Bazza McKenzie's picture

What?  You're telling me the US has been done over by the Canadians?  That's a change.

Fri, 01/10/2014 - 16:01 | 4320691 ThisIsBob
ThisIsBob's picture

Thats Michelle's soroity sister.  I guess the stateside based executives are now going to want their post-contract political contributions back.

Fri, 01/10/2014 - 16:45 | 4320764 Kirk2NCC1701
Kirk2NCC1701's picture

At first all complex Gov programs breed content, then contempt. 

Even/especially with private contractors who have insider contacts.  Total con-job.

I've been around long enough to know how greasy Strategic Sourcing can get in the private sector when dealing with large firms (1/4 schmoozing, 3/4 merit).  I can only imagine what happens to this ratio when dealing with the Gov.  Anti-corruption laws notwithstanding...

How do you spell "Revolving Door" of Gov Jobs Career Management? 

Stroke's the word:

Fri, 01/10/2014 - 16:43 | 4320819 borisspeaks
borisspeaks's picture

CGI share office space with my company.  Do you think they'll get to keep their Teslas and BMWs?

Fri, 01/10/2014 - 16:50 | 4320822 AgentScruffy
AgentScruffy's picture

Insane, criminal dumbfucks.

Why don't they just direct everyone to that Obamacare website the 20-year old kids put up in 3 days?  Answer: because it embarasses the hell out of them.

Fri, 01/10/2014 - 21:09 | 4321495 AgentScruffy
AgentScruffy's picture

Read this--hilarious (Mark Steyn): "Obamacare is as close to a Hoover Dam as latter-day Big Government gets. Which is why its catastrophic launch is sobering even for those of us who've been saying for five years it would be a disaster. It's as if at the ribbon-cutting the Hoover Dam cracked open and washed away the dignitaries; as if the Golden Gate Bridge was opened to traffic with its central span missing; as if Apollo 11 had taken off for the moon but landed on Newfoundland. Obama didn't have to build a dam or a bridge or a spaceship, just a database and a website. This is his world, the guys he hangs with, the zeitgeist he surfs so dazzlingly, Apple and Google, apps and downloads. But his website's a sclerotic dump, and the database is a hacker's heaven, and all that's left is the remorseless snail mail of millions and millions of cancellation letters." Etc...

Fri, 01/10/2014 - 18:18 | 4321067 Obamananke
Obamananke's picture

In the private world they would have been fired a long F---ING time ago.

Fri, 01/10/2014 - 19:04 | 4321160 Debt Slave
Debt Slave's picture

Gee that's great they fired the contractor. About friggen time, eh? I don't suppose we get any sort of a refund... So when do they fire the retards like Sebelius ("I'm responsible") who ALLOWED the contractor to suck up 300 million of our money? How much does Sebelius make? I bet it's a LOT more than I make. I bet it is.

I notice the communist MSM is trying to skewer NJ Governor Christi. His stock rose 10 points with me when he fired the conniving little bitch that screwed him over that bridge fiasco. At least he has the NERVE to fire a cockroach when he sees one. Can't say that about Barry, can ya? Isn't it just great to have "leaders" like Obama? Imagine what the country is gonna look like in 50 years.

Fri, 01/10/2014 - 19:18 | 4321191 Volkodav
Volkodav's picture

Total failure. No payment should be made.


Fri, 01/10/2014 - 19:43 | 4321273 QQQBall
QQQBall's picture

He'll recoup it in speaking fees and campaign donations... the taxpayer? Nyet!

Fri, 01/10/2014 - 20:13 | 4321369 Bazza McKenzie
Bazza McKenzie's picture

Perfect example of GIGO.  The law is garbage and that is compounded multiple times by the continuous changes from Obama and his morons minions.

Fri, 01/10/2014 - 21:08 | 4321494 MedicalQuack
MedicalQuack's picture

True Accenture is a much better choice for the project but the original folks who wanted the money didn't have the balls to tell HHS that the time frame was too short and there's still part of it not done..

You have IBM Wason saying it's machines have not had had enough time to learn and of course I brought up my Google machine learning story here where they suspended my account and their algorithms said I was a real duck as the machines had not learned that Duck could be a surname and assigned me to being a fowl.

It's what I call the "Sebelius Syndrome" and there are more than just her that suffer, try just about all of I said the government and world are getting a real cold hard lesson on complexities of IT infrastructure and yes we are hostages of our our infrasructure, working or non working.

One thing too that folks forget or don't know is the 3 year reinsurance plan the feds handed out in case everything really goes downhill with profits...keep this in mind as they are getting propped up just like the banks did, but maybe not as much money but feds gave them a safety net for 3 years.

Choosing a contractor is daunting project...and witch hunts for blame are prooving to be less effective.  Government doesn't want to touch anything with math and Richard Cordray proved that on the Daily Show this week.  He's a wet math noodle.

The Sebelius Syndrome is more deadly almost than H1N1 as it not only affectst the afflicted but also the rest of us, just a data and logic disease verus pigs. 

Sat, 01/11/2014 - 01:10 | 4322070 dunce
dunce's picture

It was never about building a seb site , it was always about looting the treasury. it was never about health care it was just about control. SCOTUS said it was a tax scheme. One giant step towards turning our country into a socialist cesspool. People voted for change, what else could they expect from a community organizer?

Sat, 01/11/2014 - 15:48 | 4323186 chenn
chenn's picture

As a software developer who has worked alongside Accenture in past projects I can say with certainty that this project is doomed.

Accenture was formerly known as Anderson Consulting and I have always maintained that if you are doing a good job you probably shouldn't have to change your name.

Sat, 01/11/2014 - 23:41 | 4324148 HeavydutyMexica...
HeavydutyMexicanOfTheNorthernKingdom's picture

The more Indians are on the software development team the greater the chance of failure.  When it comes to software development those guys suck cow balls.

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