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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags IT managementCIO roleservicessoftwareit strategyCGI

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

Father’s Day Gift Guide

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?