CGI-Federal and the Controversies Around the Company that Built the Obamacare Website

Summary of eRumor:

There are forwarded emails that have gone viral on the Internet alleging that CGI-Federal, the company that was hired by the U.S. Government to build the website for the Affordable Healthcare Act enrollment, is Canadian.

There are other allegations that say the senior vice president of the company, Toni Townes-Whitley was a classmate at Princeton with the future First Lady, Michelle Obama and  that CGI has donated millions of dollars to the Obama reelection campaign.
The Truth:

There are various reports about CGI Federal, the company that developed the website for enrollment for the Affordable Healthcare Act, also known as Obamacare.

Lets look at them one at a time:

CGI Federal is a Canadian Company – Truth!
CGI Federal is a U.S. subsidiary of CGI Group, which is headquartered in Montreal, Canada.  CGI Group has offices 40 countries around the world including 66 branches in the U.S.  This according to the company’s website.

CGI Federal Senior Vice President Toni Townes-Whitley attended Princeton in 1985 with Michelle Obama-
Reported to be True!
 First Lady Michelle Obama’s Princeton classmate is a top executive at the company that earned the contract to build the failed Obamacare website.”  This according to an October 25, 2013 article by that Daily Caller, which said, “Townes-Whitley and her Princeton classmate Michelle Obama are both members of the Association of Black Princeton Alumni.”

Townes-Whitley is Senior Vice-President of Civilian Agency Programs according to the CGI Group website.

CGI Federal was the only company considered by the U.S. Government to design the health insurance exchange website-Disputed!
We found mixed reports on this one.

According to an October 17, 2013 article by Reuters there were 31 bidders for the contract.  The article said “The work on grew out of a contract for open-ended technology services first issued in 2007 with a place-holder value of $1,000. There were 31 bidders. An extension, awarded in September 2011 specifically to build, drew four bidders, the documents show, including CGI Federal.”

Another report said that CGI Federal got the order without going through the bid process.  This according to an  October 13, 2013  article by the Washington Examiner.  The article said,  “CGI was one of 16 companies that had been qualified by HHS during President George W. Bush’s second term to deliver, without public competition, a variety of hardware, software and communication products and services.”

On October 28, 2013 commentators on the Fox News network repeatedly said CGI got the order without bidding,  on both the Bill O’Reilly and Sean Hannity programs.

CGI Federal was paid $678 million to build the enrollment website at!
The October 17, 2013 article by Reuters said, “As U.S. officials warned that the technology behind Obamacare might not be ready to launch on October 1, the administration was pouring tens of millions of dollars more than it had planned into the federal website meant to enroll Americans in the biggest new social program since the 1960s.”  At the time of this report the “potential total value” of the website is close to $292 million.

CGI “donated” $47 Million to Obama’s campaign- Fiction!
According to the Open Secrets site, “a research group tracking money in U.S. politics and its effect on elections and public policy,” CGI donated $128,000 to federal candidates and 52% of the recipients were  Republicans.

We also found that CGI President George Schindler donated $1000 to the Obama reelection campaign, according to an October 17, 2013 article by the Daily Caller.   The article also said that Schindler donated $1000 for the election campaign for Mitt Romney, $1000 to Virginia Democratic Rep. Jim Moran in March 2011 and donated  $2,300 to the John McCain Presidential campaign.

At the time of our investigation there is a Congressional Inquiry on CGI Group and we will be linking their findings on this page when they become available.

Posted 10/28/13

Related eRumors:

McAfee Warns of Security Issues on Obamacare Website
Various emails about the proposed Health Care Bill

For more related eRumors used keyword OBAMACARE in the search tool at the top of the page.

A real example of the eRumor as it has appeared on the Internet:

First Lady Michelle Obama’s Princeton classmate is a top executive at the company that earned the contract to build the failed Obamacare website.

Toni Townes-Whitley, Princeton class of ’85, is senior vice president at CGI Federal, which earned the no-bid contract to build the $678 million Obamacare enrollment website at CGI Federal is the U.S. arm of a Canadian company.

Townes-Whitley and her Princeton classmate Michelle Obama are both members of the Association of Black Princeton Alumni.

Read more:


Another version:

Another looming scandal that is going to be ignored to the tune of 3/4 of a Billion Dollars.


Toni Townes-Whitley
Senior Vice President at CGI Federal

The Feds only reviewed one bid to build the ACA (Obama care website)

“Federal officials considered only one firm to design the Obamacare health insurance exchange website that has performed abysmally since its Oct. 1 debut.

Rather than open the contracting process to a competitive public solicitation with multiple bidders, officials in the Department of Health and Human Services’ Centers for Medicare and Medicaid accepted a sole bidder, CGI Federal, the U.S. subsidiary of a Canadian company with an uneven record of IT pricing and contract performance.

CMS officials are tight-lipped about why CGI was chosen or how it happened. They also refuse to say if other firms competed with CGI, or if there was ever a public solicitation for building, the backbone of Obamacare’s problem-plagued web portal.”

Some allegations have come to light.

*Toni Townes-Whitley, Senior Vice President at CGI Federal for Civilian Agency programs, is Princeton Class of 1985. Michelle Obama is Princeton Class of 1985. Both are members of Association of Black Princeton Alumni.

*CGI “donated” $47 Million to Obama’s campaign.

*CGI executives were large campaign bundlers for the Obama. They helped him shut off all the security features on Obama’s campaign donation website in 2008 and 2012 in order to take multi-millions in foreign donations.