Oracle, the largest technology contractor that worked on Oregon’s failed healthcare enrollment website, is now being sued by the state, which alleges that Oracle convinced officials to purchase “hundreds of millions of dollars of Oracle products and services that failed to perform as promised.”
State officials have been hit with a lot of criticism for the website, known as Cover Oregon, which never actually launched due to a plethora of technical problems. Rather than signing up for insurance online under the Affordable Care Act, Oregon residents have had to rely on a hybrid process which uses both print and online materials through the federal government’s own website, HealthCare.gov.
Oregon is also accusing Oracle of breaching their contract, along with civil racketeering, for failing to deliver on its obligations, overcharging for poorly trained Oracle personnel to provide incompetent work, hiding from the state the true extent of Oracle’s shoddy performance, continuing to promise what it could not deliver, and willfully refusing to honor its warranty to fix its errors without charge.”
Oracle called the suit “a fictional account” in a statement on Friday, and said that it expects to prevail in its own lawsuit against Oregon, which was filed two weeks ago. A key point of contention in the case is Oregon’s decision to act as its own systems integrator on the project, using Oracle staffers on a time-and-materials basis.
“That decision was akin to an individual with no construction experience undertaking to manage the processes of designing and building a massive multi-use downtown skyscraper without an architect or general contractor,” Oracle said in its complaint.
Read more about the story at Venture Beat.
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