Contractor hired to fix reportedly has history of problems

Posted by on Feb 10, 2014 at 8:49 am

Accenture, the contractor hired to fix ongoing problems with the federal health exchange website, has been heavily criticized by some of its largest clients, including federal agencies, according to a published report.

The Washington Post reports that the U.S. Postal Service Inspector General’s Office recommended this past June that the agency consider terminating more than $200 million in contracts with Accenture. The recommendation cited an “absence of business ethics” by the firm, including a 2011 settlement with the Justice Department to resolve allegations of “kickbacks” and “bid-rigging” in federal contracts. Accenture, which paid $63 million to resolve the claims, denied the allegations.

The Obama administration announced last month that it had tapped Accenture to become the lead contractor for after cutting ties with CGI Federal, which handled the site’s troubled launch this past Oct. 1. Technical glitches blocked many prospective customers from initially using the site, and while enrollment has picked up, the numbers have struggled to recover from the early setback and reach the administration’s benchmarks.

Full story.

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