The state will shell out an additional $35 million to developer CGI in a settlement over the disastrous Health Connector website, and Attorney General Martha Coakley has launched an investigation into the Virginia-based company, officials said yesterday.
"There were deficiencies and shortcomings on our part and CGI's part," said state Obamacare czar Maydad Cohen. "That has been well-documented by independent reports and by virtue of the fact we're in the position we're in today."
All totaled, CGI will have recouped $52 million of the original $69 million contract — a cost that skyrocketed to $89 million thanks to cost overruns. But the site was doomed from day one, baffling users with glitches that blocked people with hyphenated names and forced others to falsely identify themselves as prison inmates or mental patients to enroll.
"What a sad state of affairs that you spend that amount of money and there's no accountability at all," said Joshua Archambault of the Pioneer Institute. "If this were the private sector, there would be serious consequences for wasting this kind of money."
The agreement gives Coakley the power to try to recover up to $12 million from CGI under the False Claims Act.
"The failings of the CGI-developed website have been unacceptable, and we are conducting an investigation into their actions to seek to recover money back for taxpayers," said spokesman Brad Puffer.
But GOP gubernatorial candidate Charlie Baker shot back: "Investigations cannot undo the taxpayer dollars wasted and the disruption of families' access to health care."
Gov. Deval Patrick defended the settlement in a statement: "This is a pragmatic way to wind up a frustrating relationship. CGI has been a disappointing partner."
CGI had continued working on the day-to-day project as recently as this week, even though Patrick had announced in March that the two sides were "parting ways."
Part of yesterday's settlement included determining the ownership of intellectual property — items such as software and code — that wasn't clearly spelled out in the contract.
CGI workers will remain on the job for the next three months in the transition.
"This agreement recognizes the important contributions made by CGI throughout the project and during the past three months when hundreds of CGI professionals stayed on the job," said CGI spokeswoman Linda Odorisio.
While state officials had blamed CGI for the disaster, documents unearthed by the Herald showed that in-fighting among Patrick administration officials, frequently changing work orders, and the state's obsession with building the "Rolls-Royce" of insurance portals also contributed to the cyber-meltdown.
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