Michigan awards contracts to builder of healthcare.gov

Governor Rick Snyder of Michigan. (File) (Alex Wong, Getty Images)
Governor Rick Snyder of Michigan. (File) (Alex Wong, Getty Images)
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Updated: 6/30 3:24 pm

LANSING, Mich. (AP) — Michigan Gov. Rick Snyder's administration is being criticized for awarding computer contracts worth about $90 million to a Canadian company, that was the lead contractor on the federal government's troubled healthcare.gov website.

The Detroit Free Press said Michigan last week awarded two contracts to CGI Technologies and Solutions, despite it not being the low bidder to build a system to cut checks to state vendors and do other functions. CGI's parent is headquartered in Montreal.

New York-based Accenture's bid was about $5 million less, but the state said CGI provides the "best value" because its solution is a better fit.

After awarding the CGI contract, Michigan negotiated $2.2 million in concessions.

Democratic House minority Leader Tim Greimel said it's "especially troubling" Michigan chose a higher bid from a foreign company.

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