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You are here: Home / Government Contracting News / Audit: HHS failure to screen Obamacare contract recipients cost taxpayers $400M

January 29, 2015 By AMK

Audit: HHS failure to screen Obamacare contract recipients cost taxpayers $400M

Not even good enough for government work.

An internal investigation into how the federal government awarded contracts for developing and building the Affordable Care Act’s most important public element — the online exchanges that were to be used by millions of Americans to purchase health insurance — has found the process was fraught with obvious and expensive errors.

The Department of Health and Human Services (HHS) failed to conduct background checks on prior work by companies awarded many of the Obamacare contracts and failed to require those same companies to be accountable for cost overruns, leaving taxpayers on the hook instead.

The report published Jan. 22, 2015 by the Office of the Inspector General for HHS concludes those mistakes soaked taxpayers for more than $400 million in unexpected costs — essentially doubling the expected cost of building the exchanges in the first place.

Keep reading this article at: http://watchdog.org/194839/obamacare-contracts-cost-taxpayers/

Filed Under: Government Contracting News Tagged With: acquisition strategy, background check, cost reimbursement, HHS, IG, past performance, performance, risk

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