Tuesday, July 22nd23.6°C
21452
21739

Report: Canadian tech firm CGI loses Obamacare website contract

WASHINGTON - There's a report that the U.S. government is about to dump the Canadian company that was hired to create healthcare.gov, the website whose glitches have undermined President Barack Obama's health reform.

The Washington Post says the government will not renew the contract for Montreal-based CGI when it runs out at the end of February.

Presidential spokesman Jay Carney is not confirming or denying the report, saying it's up to the health agency overseeing the project to provide that information.

The agency tells The Canadian Press that it's working with its contract partners on a "mutually agreed-upon transition" so that site works smoothly.

The health-care reform effort, a defining feature of Obama's presidency, requires people to sign on to insurance exchanges, especially healthy young people, primarily through the website.

But the launch was sideswiped by technical glitches. Obama admitted there had been what he called "fumbles," and his health secretary even conceded that it had been a "debacle."

CGI (TSE:GIB.A) and its U.S. division each saw their shares slide about three per cent following the release of the report.

The company says it will release a statement later today.

The Obamacare rollout fiasco prompted unprecedented media scrutiny in the U.S. for the Canadian company, which was founded in Quebec City in 1976 and has grown into a multinational operation with 68,000 employees in 40 countries.

But amid the rollout woes, and the political opposition to Obamacare in the U.S., the company faced criticism in the U.S.; some media reports even noted its involvement in the now-defunct Canadian long-gun registry.

The Post says U.S. officials are preparing to sign a 12-month contract, worth roughly US$90 million, with a different company, Accenture, that built a health exchange for the state of California.

The newspaper says the move comes after the administration concluded that CGI has not been effective enough in fixing the website.

The Canadian Press


Read more Business News

22439


Recent Trending




Today's Market
S&P TSX15315.13+65.14
S&P CDNX1010.884.40
DJIA17113.5461.81
Nasdaq4456.016+31.312
S&P 5001983.53+9.90
CDN Dollar0.9313+0.0001
Gold1313.40+4.2001
Oil103.89-0.70
Lumber332.50+6.20
Natural Gas3.764-0.085

 
Okanagan Companies
Pacific Safety0.200.00
Knighthawk0.01-0.005
QHR Technologies Inc1.19+0.04
Cantex0.06+0.005
Anavex Life Sciences0.33-0.018
Metalex Ventures0.07+0.005
Russel Metals35.60+0.61
Copper Mountain Mining2.83+0.14
Colorado Resources0.215+0.015
ReliaBrand Inc0.10+0.019
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.19+0.01

 



22704

FEATURED Property
19014484820 Westridge Drive
5 bedrooms 4 baths
$985,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Labour shortage in BC

The mainstream media are finally waking up to something unusual in British Columbia – a labour shortage. If the experience of Alberta is a guide to our own future, the highly skilled labour will...


Learn to delegate effectively

Photo: ContributedI have the pleasure of witnessing people delegate tasks quite often. Sometimes with tremendous success and sometimes with disastrous consequences. I have chaired a lot of committees...


Euro debt woes re-emerge

Big Picture Euro debt woes re-emerge Europe’s debt woes jumped back into the headlines this week trumping other economic, geopolitical and corporate developments. Word that one of Portugal&rsquo...

_








Member of BC Press Council


22461