Saturday, August 1st13.1°C
27107
27169

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




Recent Trending




Today's Market
S&P TSX14468.44+85.68
S&P CDNX594.31+6.01
DJIA17689.86-56.12
Nasdaq5128.28-0.50
S&P 5002103.84-4.79
CDN Dollar0.7640-0.0052
Gold1096.90+0.60
Oil47.22-1.69
Lumber252.30+0.50
Natural Gas2.883+0.062

 
Okanagan Companies
Pacific Safety0.17-0.01
Knighthawk0.010.00
QHR Technologies Inc1.42+0.00
Cantex0.035-0.005
Anavex Life Sciences0.9101+0.1101
Metalex Ventures0.05+0.00
Russel Metals19.40-0.05
Copper Mountain Mining0.79+0.01
Colorado Resources0.065+0.005
ReliaBrand Inc0.0049+0.0004
Sunrise Resources Ltd0.03+0.00
Mission Ready Services0.095-0.045
Decisive Dividend Corp2.55+0.05

 





FEATURED Property
23708223255 Sundance Drive
5 bedrooms 4 baths
$559,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Chasing ducks

Photo: Thinkstock.comWhen businessmen tell me that being low priced is the only way to stay in business, I am skeptical. Price is the simplest way for a consumer to compare and is overused as the basi...


Taking care of business

Photo: Thinkstock.comRetirement as a goal has changed a lot over the years. There was a time, it was the only goal. You’d punch the clock and count the years until you could stop punching that t...


Income from home equity

Photo: Thinkstock.comWhen retirement funds run low, seniors often ask if tapping into the equity in their home is the right way to retain financial independence. To see if this option might be a good ...

_



26376




Member of BC Press Council


26707