Obama’s Disastrous Website Brought in No-Bid Contractor Less Than Two Months Before Launch

Posted by on Nov 25, 2013 at 1:03 pm

Just remember, though, Obama didn’t know about any of this. He’s out of the loops and besides, back on August 9 he was heading on vacation.

So leave Obama alone! He didn’t know!

Caught flat-footed by the challenges of building the financial-management and accounting parts of the U.S. government’s new online marketplace for health insurance, officials rushed to hire a familiar contractor without seeking competing bids, according to government procurement documents reviewed by Reuters.

The documents dated in August – less than two months before the opening of online marketplaces established by President Barack Obama’s landmark healthcare law – showed the agency in charge had only “recently learned” that building the financial management functions was “beyond (its) currently available resources.”

They spent $634 million building this mess, but didn’t have resources. Um, OK.

The Centers for Medicare & Medicaid Services (CMS) documents shed more light on the problems facing the agency as it worked on the new Obamacare marketplaces. On Tuesday, CMS’s deputy chief information officer Henry Chao told a congressional panel that 30 to 40 percent of the federal marketplace was still under construction.

The contract, valued at nearly $12 million, was awarded on Aug. 9 to Novitas Solutions, according to the documents. Novitas has numerous contracts with CMS, including to administer doctor and hospital claims in the federal Medicare program for elderly Americans. Novitas is a subsidiary of Diversified Service Options, which is wholly-owned by Blue Cross and Blue Shield of Florida .

CMS spokeswoman Joanne Peters said on Friday and on Saturday that representatives of the agency were unavailable to comment on the contract or on an estimate of when the financial management part of the marketplace is expected to be finished.

Maybe they’ll comment after the receive the subpoenas.

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