Serious question... where does all that money go? Are a few people personally making many millions off this deal? Or are there really hundreds or thousands of employees working on it? Or is it getting subcontracted out many times with each layer taking a slice?
I'd imagine it's a gravy train gig all around. The payoff can be very large, but the government makes you jump through all manner of hoops at every stage of the way. I've actually done government work at the state level (ironically working on healthcare systems) and it's crazy how difficult it is to get anything accomplished.
To start with the proposal process is extremely intense and only a small number of companies have the resources to even apply for a project like this. The system I worked on was more simple than this and our proposal documentation was hundreds of pages.
With this being such a hot political issue, I can't even imagine the politics going on behind the scenes on top of any technical challenges. The number of meetings and reviews was probably astronomical.
I have no doubt that some principles at CGI are making huge profits off of projects like these, but it's not totally free money as it might seem.
Of course it's over budget. Once you get past the $100 million mark for a web app, your estimation skills start breaking down a bit. But it's good when you have a client who can print money and the private players in the DOD as inspiration. Why not go over budget? You aren't doing a government contract right unless you are going way over budget.
I would love to send out an invoice for over $100 million. Even better would be to pick up the phone and tell the government that you are burning through the cash and you will need another $100 million to keep going. Who is their senior developer? Kobe Bryant? Their development team? The L.A. Lakers? "Sorry, Kobe is refusing to write another line of code until we renew his contract."
Now to be fair... $93.7m at $170 per hour is 551,176 billable hours. Now, it's certainly not a one man job--maybe a team of 20 ought to do it? That leaves 27,558 hours per person. Divide that by 40 and it looks like you're going to be running a team of 20 for 688 weeks at 40 hours per week of billable hours. 688 weeks is 13 years.
So that amount will get you a team of 20 working for 13 years straight. Bump it up to a team of 40 and you get 6.5 years.
One thing I learnt, corporate IT believes in quantity over quality. It's definitely more than 20 people - I would guess maybe 200 people worked on the project.
Yea I don't think the programmers got the cash. Though I'll bet some executives from CGI are probably are taking a pretty nice holiday right about now.
"the bulk of which ($88 million) went to CGI Federal, the company awarded a $93.7 million contract to build Healthcare.gov and other technology portions of the FFEs"
What are the "other technology portions".
If part of the other technology is building the infrastructure to allow hundreds of insurance companies to access very sensitive data from millions of customers, then that number seems a lot more reasonable.
$1.4 trillion spent by millions of consumers in a free market will produce far better healthcare than $1.4 trillion spent by the USG. When it comes to making choices, the market is far, far more efficient than the political system.
As for the drop in the bucket, it was to produce a web app by which those millions of consumers are supposed to find health care plans, not actual health care. The drop in the bucket is a miserable failure! It should serve as an index of what to expect from the system, as currently constituted.
There should be no USG health care site. Consumers should be free to type "health care" in their search bar and select the best one they find. High deductible or low deductible. Across state lines. Birth control covered or not. Mental or not. It should be like choosing a smart phone. And the government's role should be limited to keeping the suppliers honest.
It may have escaped your attention but currently web dev is not considered a medical profession. I suppose one could say that they would rather see the money spent on healthcare bureaucracy, but that's a bit of a weaker statement I guess.
Of course this notion never cross my mind. What I was eluding to was money spent facilitating healthcare is money well spent, even if they overspent. After all, we are talking about the U.S. Government.
There's a 5,534 line file (dummyData.js) and a 6000+ line (register.js) file, un-minified, with with global functions currently on the site. I would be fired for putting this sort of thing into production. For the $, there's no excuse for this.
Think of the company you could build - build one federal website for all of your seed, A, B, and C rounds of funding in one bundle, with no equity loss.
Looks like they adjusted the figure - earlier it was at $634 million from what I saw but now it looks like it's closer to $500 million. Regardless, it's still a ridiculous amount...
The cost of the Iraq War was over $800 billion. Over a ten year period, I would expect the cost of national healthcare to be on the order of ~1 trillion dollars.
"the bulk of which ($88 million) went to CGI Federal, the company awarded a $93.7 million contract to build Healthcare.gov and other technology portions of the FFEs"
