H-P Replaces Verizon as Host of Website

The Department of Health and Human Services signed a contract with Hewlett-Packard to replace Verizon's Terremark subsidiary as its web-hosting provider for the federal health-insurance marketplace, according to people familiar with the matter.

Terremark's data center hosts key elements of HealthCare.gov, as well as a digital juncture used to exchange information between it and state-run exchanges, federal agencies and insurers. HHS had awarded $55.4 million to Verizon since its contract began in 2011, including an award for $9.4 million of new website capacity this month, federal contracting records show. But this spring, H-P's Enterprise Services group was awarded a $38 million contract to provide web-hosting services over the summer, contracting records show. The contract was for the government's health-insurance marketplace, said a person familiar with the matter. Terremark was a subcontractor on a bid for the new contract but lost out to H-P, said another person familiar with the matter. An HHS official said the agency "has begun the necessary activities to transition the data center to H-P." We are working to ensure a smooth transition between the two contractors." The federal government had worked with Verizon to make changes to the current system to improve its reliability in early November, the official said.

(Nov 27)