Weekend Economists at War! January 10-12, 2014

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33. CGI to Be Replaced by Accenture on Obamacare Contract

http://www.bloomberg.com/news/2014-01-10/cgi-to-be-replaced-by-accenture-on-obamaacre-contract.html

CGI Group Inc. (GIB), the company that built the main Obamacare website, will be replaced next month when its contract with the U.S. federal government expires, a person familiar with the decision said.

The Obama administration intends to sign a contract with Dublin-based Accenture Plc (ACN) to complete unfinished work on healthcare.gov and run the site, said the person, who asked not to be identified because the decision isn’t public. Montreal-based CGI fell 2.9 percent, to $31.58 in New York.

The Oct. 1 debut of the insurance exchange serving 36 of the 50 U.S. states was plagued by delays, error messages and hang-ups that prevented people from completing applications. Accenture, the second-largest technology-consulting company, led construction of California’s better-performing state system.

“We are working with our contract partners to make a mutually agreed upon transition to ensure that healthcare.gov continues to operate smoothly for consumers,” Aaron Albright, a spokesman for the U.S. Centers for Medicare and Medicaid Services, said in an e-mail without confirming the decision.