Over the weekend the Wall Street Journal scored a scoop of sorts, getting the first interview with Health and Human Services Secretary Kathleen Sebelius since her ill-fated appearance on “The Daily Show.” She addressed the failure of her Healthcare.gov website to function as the enrollment marketplace for the 36 states that are having the federal government operate their Obamacare insurance exchanges, instead of doing exchanges on their own.
The Journal quoted Sebelius as saying “she would see if the government was entitled to any refunds, once the work is done.” With $400 million having been spent on outside contractors for the collapsed website, reporters ought to follow up on that aggressively.
Government contractors usually escape responsibility for cost overruns, lapsed schedules or downright failure to produce a product that works by claiming, rightly or wrongly, that the instructions they were given destined the project for failure, were not explicit enough, or were changed midway through the work. In the case of Healthcare.gov, the Statement of Work instructing the lead contractor, CGI Federal, was 60 pages, single-spaced. So lack of detail may not be a great defense. But were the instructions poorly conceived — or changed in a way that caused the current fiasco? Or are other factors responsible for the failure, making it unlikely that we taxpayers can get some of our money back?
More generally, it seems as if every government contract results in delays, overruns, or failure. Has the government ever gotten its money back? When? How? What were the circumstances?
And who and what is to blame for situations where the contractors failed miserably but there was no accountability? One related example that I will harp on until someone does the story: Are we getting any money back from Booz Allen Hamilton for what their guy Edward Snowden cost us? Booz, by the way, was also a contractor on the Obamacare project.