That lack of expertise explains why in building healthcare.gov, the government turned to industry contractors; in particular, to CGI Federal, a subsidiary of CGI Group, a Canadian company. To those uninitiated in the dark art of government contracting, it seems scandalous that CGI, a company most Americans had never heard of, a company that is not located in Silicon Valley (where President Obama has plenty of Internet superstar friends who could have formed a dazzling brain trust to implement his signature legislation) but rather in Montreal, could be chosen as the lead contractor for the administration’s most important initiative. While right-wing news outlets have focused on the possible relationship between Toni Townes-Whitley, senior vice president for civilian-agency programs at CGI Federal, and Michelle Obama, both of whom were 1985 Princeton graduates, CGI’s selection is probably more an example of a dysfunctional system than it is a scandal. “A lot of the companies in Silicon Valley don’t do business with the government at that level [the level required for federal contracting],” explains Soloway. “It is very burdensome, and the rules make it very unattractive.” Indeed, government contractors have to meet a whole host of requirements contained in a foot-thick book, including cost accounting and excessive auditing, to prove that they are not profiting too much off the American taxpayer. Hence, there tends to be a relatively small, specialized group of companies that compete for this work, even on such critical matters as healthcare.gov. - Accounting for Obamacare
posted by beisny
on Dec 27, 2013 -
Tunneling in any dense urban environment is an expensive proposition, but the $5 billion price tag for just the first two miles of the Second Avenue subway cannot be explained by engineering difficulties. The segment runs mainly beneath a single broad avenue, unimpeded by rivers, super-tall skyscraper foundations or other subway lines.
American taxpayers will shell out many times what their counterparts in developed cities in Europe and Asia would pay. In the case of the Second Avenue line and other new rail infrastructure in New York City, they may have to pay five times as much.
Amtrak is just as bad. Its $151 billion master plan for basic high-speed rail service in the Northeast corridor is more expensive than Japan’s planned magnetic levitating train line between Tokyo and Osaka, most of which is to be buried deep underground, with tunnels through the Japan Alps and beneath its densest cities. - U.S. Taxpayers Are Gouged on Mass Transit Costs
posted by beisny
on Aug 28, 2012 -