Monday, February 10, 2014

Accenture, hired to help fix HealthCare.gov, has had a series of stumbles

The Washington Post reports:
Accenture, the contractor urgently tapped to help fix the federal health-insurance Web site, is a favorite of corporate America but has a record that includes troubled projects and allegations of ethical lapses, a review of the consulting giant’s history shows.

At the University of Michigan, students and faculty members are protesting the school’s use of Accenture to help cut costs, citing a report by a committee of alumni and graduate students that said the firm has “a disturbing pattern of problematic past performance.” In North Carolina, glitches in an Accenture-configured computer system contributed to massive backlogs for food-stamp recipients, leading the Obama administration last month to threaten to withdraw the state’s food-stamp funding.

Federal officials have also on occasion criticized the company’s integrity. The U.S. Postal Service Inspector General’s Office wrote in June that Accenture had “demonstrated an absence of business ethics” and said that the agency should consider terminating the firm’s more than $200 million in contracts. The office cited in part a 2011 settlement with the Justice Department in which Accenture paid $63 million to resolve alle­gations of what the government called “kickbacks” and “bid- rigging” in numerous federal contracts. The company denied wrongdoing in the case.
The Chicago Way.