Obama crony capitalism fails again, White House replaces CGI, Obamacare website contractor, Toni McCall Townes-Whitley Senior VP CGI and Michelle Obama Princeton alumnus
“Public records indicate that during this time, every quarter from 2010 through 2012, CGI Group itself was lobbying on “HUD housing management contracts.”
Finally, there’s also a whistleblower lawsuit from a former CGI employee — who’d been recruited from HUD after overseeing the very Section 8 contracts CGI won — alleging that he was fired after refusing to go along with fraudulent plans to work around the bidding process. CGI denies the accusations, but has so far failed to get the case thrown out.”…Washington Post October 23, 2013
“Why was Obama promoting Capri Capital and other investment firms at the same time that Rezko, Levine and Cellini were shaking them down?”…Citizen Wells
“Now, I don’t get upset when foreign and national journalists fail to mention Tony Rezko, or the Daley boys, or how the Chicago machine plans to staff the Department of Justice, and the new Department of Homeland Casinos.”…John Kass, Chicago Tribune July 30, 2008
More Obama crony capitalism failures at taxpayer expense.
From the Washington Times January 10, 2014.
“Finally! White House to replace lead HealthCare.gov contractor”
“The Obama administration plans to replace the lead contractor on HealthCare.gov, the glitchy federal website that hindered the fall rollout of the new health care law, with another company.
Officials plans to drop CGI Federal, after the company took a share of blame for its role in preparing a website that serves 36 states and needed extensive repairs after its Oct. 1 launch, the Washington Post first reported. A major consulting company, Accenture, will take its place.
CGI’s contract runs out at the end of February, and Accenture had built the relatively well-functioning health exchange that California is using to enroll people in private plans or Medicaid under Obamacare, the Post reported.”
From Citizen Wells October 25, 2013.
Is this another case of Barack and Michelle Obama involved in crony capitalism or just poor judgement?
Toni McCall Townes-Whitley, who was in Michelle Obama’s class at princeton, is a Senior VP at CGI.
From the Association of Black Princeton Alumni.
Toni McCall Townes-Whitley ’85
Senior Vice President, Federal Civilian Agency Programs, CGI
First Lady Michelle Obama ’85
From the CGI website.
Civilian Agency Programs
CGI was the lone bidder.
From The Washington Examiner October 13, 2013.
“Feds reviewed only one bid for Obamacare website design”
“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.”
“The multiple awards were in the form of “task orders” for projects of widely varying size. Over the life of the CGI contract — which expires in 2017 — the IT firm can receive awards worth anywhere from the “$1,000 to $4 billion,” according to a contracting document provided by CGI to the Washington Examiner.
This is apparently the route chosen by CMS officials in awarding the Obamacare Healthcare.gov website design contract to CGI.
Between 2009 and 2013, CMS officials awarded 185 separate task orders to CGI totaling $678 million for work of all kinds, according to USAspending.gov, a federal spending database.The Obamacare website design contract was for $93 million.”
“The first indication of questions of CGI performance and pricing came in February 2010 when the firm protested a $230 million CMS contract award to Computer Sciences Corp. Inc.
In a sharp rebuff to CGI in November 2010, General Accountability Office acting counsel Linda H. Gibson denied the CGI protest.
In doing so, she noted that CSC’s bid was $148 million versus CGI’s bid of $258 million. When CMS modified the terms of its proposal, CSC was still substantially lower, coming in at $223 million versus CGI’s price tag of $395 million.”
“As the Examiner previously reported, CGI in Canada also suffered embarrassment in 2011 when it failed to deliver on time for Ontario province’s flagship project a new online medical registry for diabetes patients and treatment providers.
Ontario government officials cancelled the $46.2 million contract after 14 months of delay in September 2012. Ontario officials currently refuse to pay any fees to CGI for the failed IT project.”
Obama’s history of crony capitalism is extensive and includes another Princeton grad, John Rogers.
From Citizen Wells October 23, 2011.
“Mr. Obama also recently pointed to his work on the Illinois pension issue as a model for what he would do as president to promote minority-owned companies.”
“The goal was always “to open up doors,” said John W. Rogers Jr., the chief executive of Ariel Capital Management, one of the investment firms that received state business. “It was, as the Rev. Jesse Jackson has eloquently put it, to force other industries to have their ‘Jackie Robinson’ moment.””
“During this period, campaign finance records show, executives from Ariel, Loop and two other leading Chicago investment firms, Holland Capital Management and Capri Capital, sharply increased their donations to Mr. Obama’s State Senate campaign fund. And once he began his campaign for the United States Senate, they quickly became a fund-raising core that has carried over into the presidential race.
Mr. Rogers, who is one of three people at his company who have each bundled at least $50,000 in donations for Mr. Obama’s presidential campaign, said that his financial support for the senator had “no connection” to his company’s efforts to win state contracts, but that it reflected the broader excitement over what Mr. Obama’s success meant for blacks in America.”
“Still, things have not worked out as well for some of the investment managers. Both Ariel and Holland were given several hundred million dollars to invest.
But one of the funds dropped Ariel and two dropped Holland last year after their investment returns lagged behind those of other firms.”
“In 2002, the year after Obama made the pitch, the Illinois Teacher Retirement System reported an 18% increase in assets managed by minority-owned firms. Ariel’s share grew to $442 million by 2005.
In 2006, after the federal investigation became public, the teacher pension board severed its relationship with Ariel, concluding that Ariel’s investment returns were insufficient.”