Jeryl Bier
The Weekly Standard
March 28, 2014

The Centers for Medicare and Medicaid Services (CMS) released details of the latest contract with Terremark Federal Group covering “open market items” required for the ongoing operation of Healthcare.gov. The documents include an itemized list of computing and network services, fees, licenses and computing capacity. The total comes to $19,755.465.98 and covers four months.

The expenditures appear to relate to the increased capacity that CMS has said was being added in anticipation of increased interest in obtaining Marketplace insurance as the March 31 deadline nears. The government had previously announced that Terremark, a subsidiary of Verizon, was being replaced by Hewlett-Packard. However, since the switch-over was scheduled for the end of March just as open enrollment is ending, CMS awarded Terremark a $58,000,000, seven-month extension back in January.

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