Obama Inc. Gave Failed ObamaCare Website Company a Sweetheart Deal

Daniel Greenfield, a Shillman Journalism Fellow at the Freedom Center, is a New York writer focusing on radical Islam. He is completing a book on the international challenges America faces in the 21st century.


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Questions were raised before why Obama Inc. suddenly began throwing so much money toward a Canadian company with a poor track record.

CGI Federal is a subsidiary of Montreal-based CGI Group. With offices in Fairfax, Va., the subsidiary has been a darling of the Obama administration, which since 2009 has bestowed it with $1.4 billion in federal contracts, according to USAspending.gov.

In comparison, in 2008, under President George W. Bush, CGI contracts totaled only $16.5 million for all federal departments and agencies.

It’s not like CGI Federal could be confused with a good company. There were plenty of warnings throughout the whole process that the whole thing was not going to work.

When Canadian officials in Ontario ran into the same problem with CGI… they fired it.

Canadian provincial health officials last year fired the parent company of CGI Federal, the prime contractor for the problem-plagued Obamacare health exchange websites, the Washington Examiner has learned.

CGI Federal’s parent company, Montreal-based CGI Group, was officially terminated in September 2012 by an Ontario government health agency after the firm missed three years of deadlines and failed to deliver the province’s flagship online medical registry.

Obama just kept throwing more taxpayer money at CGI. And the entire ObamaCare setup was reserved for only one company.

Federal officials considered only one firm to design the Obamacare health insurance exchange website that has performed abysmally since its Oct. 1 debut.

Rather than open the contracting process to a competitive public solicitation with multiple bidders, officials in the Department of Health and Human Services’ Centers for Medicare and Medicaid accepted a sole bidder, CGI Federal, the U.S. subsidiary of a Canadian company with an uneven record of IT pricing and contract performance.

CMS officials are tight-lipped about why CGI was chosen or how it happened. They also refuse to say if other firms competed with CGI, or if there was ever a public solicitation for building Healthcare.gov, the backbone of Obamacare’s problem-plagued web portal.

Instead, it appears they used what amounts to a federal procurement system loophole to award the work to the Canadian firm.

CGI was a much smaller vendor when it was approved by HHS in 2007. With the approval, CGI became eligible for multiple awards without public notice and in circumvention of the normal competitive bidding procurement process.

There is no evidence CMS issued any public solicitation for the Obamacare website contract.

This smells bad. No, it outright stinks. And it merits a serious investigation. Why did Obama Inc. suddenly begin tossing a ton of work to CGI and practically reserve ObamaCare for them?

General Accountability Office acting counsel Linda H. Gibson noted that at the time CMS officials had only rated some of CGI’s previous services as “fair.”

But it sounds like their insider Obama contacts were more than unfair.

  • Robert Lande

    We can expect more of the same from Obamacare.

    • Jim1904

      Dr MoooocHell, Dr. MoooocHELL,

      Please report to the O.R.

  • TheOrdinaryMan

    Obama has 64 ways to weaken and destroy America. From various forms of moral relativism, to creating money out of thin air, to spending trillions on projects/companies that fail….to denying American military families death benefits. By the way, whatever happened with….Benghazi?…the Navy Seal scandal?

  • CowboyUp

    It seems like only yesterday the democrat party was all about” transparency,” and was staunchly opposed to no bid contracts, even when the company in question was the only company on the planet that could fulfill the contract, as Halliburton was. We haven’t heard anything about Halliburton since Obama moved into the WH. It was all msm complicit theater for the moment. Like “the homeless” it only surfaces when the GOP is in charge.
    I notice this change in CGIs status came the year the dp took over congress, 2007, but before they got their supermajority and the presidency. They’ve been setting up this crooked mess for a while.

  • SHansen

    Oddly they’ve just signed a huge contract with Royal Dutch Shell and their stock price is climbing…so evidently the petroleum industry has faith in CGI. But then they have a bunch more cash to throw around….

  • Sarah Holloway

    As a former contracting officer, I can say with some professional authority, that this appears to be against reasonable Government Regulations for contract bids.
    I would have been in a mess o’trouble if it had been my project.

    • http://avarepublic.blogspot.com/ Ava Travis

      Yes, I work with some federal contracting also, though not as a C.O. I wonder whether ACA itself as part of those 8,000 pages waived federal laws requiring open bidding procurement.

      • a

        I own a company doing government contracting and there are quite a few sole sources on a regular basis. Check around on FBO.gov also this contract is a load, i cant seem to find anything on it such as a solicitation, a notice of sole source, a J and A, an award notice, anything! and my company does IT work, i think i would have noticed! Makes me sick that I bust my ass 15 hrs a day jumping through hoops to do business with the fed. and these people get spoon fed 600 mil + all the other contracts. I wonder what they really know about the JSF that they won an award for last year. these people cant fix a website but they can fix JSF’s?. this admin is pathetic and this system is a joke. I love America and the constitution however i cant stand our govt.

  • Yankmeup

    You guys are forgetting one huge piece to explain the growth of contracts CGI now has with the Federal Government. It bought a huge Federal contractor in 2010;

    http://www.fasken.com/en/cgi-acquires-stanley/

    CGI didn’t just win contract, it bought itself into the status of an approved federal contractor.

  • Dick Elson

    http://frontpagemag.com/2013/dgreenfield/obama-inc-gave-failed-obamacare-website-company-a-sweetheart-deal/

    The CGI IT company building Obamacare is Canadian based in mafia controlled Montreal, Canada. It was fired by Canadian government last year for problems. Canada health system will be able to link into the US health system and they can both operate as a united North American medical care system under world government. Believe it or not. One big mexican-USA-Canadian Region of the United World Government. How many know that EU is Spanish for estados unidos (United States). Another problem not mentioned is what about US citizens who travel out of country and need medical care? What about US citizens who need medical care travel insurance? And—in Canada – pharmacy is not covered except for some older and poor folks. PLUS – in Canada health insurance is needed for dental, pharmacy, chiropractor, etc – the extra-medical conditions not covered by medical insurance. PLUS the Canadian system is run by individual Provinces. The feds merely control $$ and standards. OH well – If you travel – have insurance because Medicare etc does not work outside the USA and neither will Obamacare. omwv

  • Mike Atamian

    I thought if you sole source anything, you need to provide a justification and adjudication (J&A) report saying why ONLY this company can do the work. So where is that? Sole sourcing is generally frowned upon; nearly every government agency I’ve worked with cringes if you mention it.

  • Zombee

    After all of Oba-maos demogogery about job creation for Americans he gives a failed foreign Canadien CGI a no-bid contract worth mult-millions of taxpayer dollars. The big question is why? The Congress needs to find the answers for the US taxpayers who are already hurting from this bad law known as Obamacare .

  • http://www.itzyinteractive.com/ Kyle Kulyk

    Wait a minute…what are they trying to pull here? Sure, if you look up CGI Group there was next to nothing under Bush, but when you search CGI Federal, using their own link to USASpending.gov, between 2001 and 2009 when Bush was in office, over $800 million is reported.

    Am I reading this wrong or are these sources just playing a shell game here? It’s CGI Group, no CGI Federal, no CGI Group! They make it sound like Bush had nothing to do with these guys but by their own links prove that’s not even close to being true. How gullible do they think people are?

    Head on over to USASpending.gov and see for yourself.