Friday, December 27, 2013

Software Company Responsible for ACA Rollout In Deep DooDoo

States withholding payments and legal action being threatened.

Massachusetts officials are reviewing legal options against CGI Group, a Montreal-based information technology company, and will make recommendations on how to seek financial redress at a Jan. 9 meeting.

So far, the state has paid $11 million of its $69 million contract with CGI. It will not pay a penny more until a functioning website has been delivered, said Jason Lefferts, spokesman for the Commonwealth Health Connector, the state’s insurance marketplace.

“CGI has consistently underperformed, which is frustrating and a serious concern,” Lefferts said. “We are holding the vendor accountable for its underperformance and will continue to apply nonstop pressure to work to fix defects and improve performance.”