State terminates contract with Healthcare.gov contractor over tax software system

North Carolina has already paid CGI $63.8 million for the tax-collection system

Public relations woes for Healthcare.gov contractor CGI continue to mount, as North Carolina has decided to terminate its contract with the systems integrator for a new tax-collection software system.

While the two sides say the termination was mutually agreed upon, in a press release CGI pointed out that North Carolina was able to collect an additional US$320 million in taxes from using the parts of the system, which is called TIMS (Tax Information Management System) that were already completed.

"TIMS is the result of a long-term information technology initiative that spanned multiple administrations," CGI said. "The project has returned more than three times its cost to the State in just over five years."

North Carolina has paid CGI roughly $63.8 million so far, and under the termination agreement will also give it another $5 million, said state Department of Revenue spokesman Trevor Johnson.

TIMS in its current form handles 28 of North Carolina's 34 tax types. The next project phase was supposed to add the remaining ones, which include major types such as individual income, Johnson said.

Originally, the next phase was supposed to be finished in October, but that deadline was missed and no new one has been set, according to Johnson. The state plans to use a legacy system to handle this tax filing season, he said.

The decision to cancel CGI's contract was a "tough" one, Johnson said. "Over the past year we've been looking at the project in detail, and the progress we were hoping for was not met."

Nothing has been finalized regarding the future direction of TIMS, he said.

CGI served as one of the main contractors for Healthcare.gov, the site where U.S. residents can shop for health insurance under the Obama administration's health care overhaul. The site was beset by performance woes upon its launch on Oct. 1, although it has since been stabilized.

Administration officials have come under heavy fire from lawmakers, who say they ignored warnings, including from CGI itself, that the site wasn't going to be ready for the Oct. 1 launch.

CGI's contract for Healthcare.gov won't be renewed after it ends in February.

A number of state-level health care exchanges developed by CGI have also experienced problems.

CGI's role in developing the health care sites and the subsequent fallout had nothing to do with North Carolina's decision to end the TIMS contract, according to Johnson.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags servicesit strategyCIO rolesoftwareCGIIT management

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?