Cloud computing costs for more than 5 times original estimates

Cloud computing costs for more than 5 times original estimates

The federal government will spend more than five times the originally contracted amount for computing cloud software, according to government contracts released by the Centers for Medicare and Medicaid Services (CMS).

CMS released documents for its IT contract with Verizon Terremark, which is running the cloud component of, on Thursday. The latest documents, which were first reported by, explain that the original contract has ballooned from $10.8 million to $59.9 million since 2011.

CMS said it “could not have contemplated” the need for additional IT framework that brought millions in extra costs.

The original contract was altered 12 times between its initial award and Nov. 30, 2013, the administration’s self-imposed deadline to “fix” following the website’s disastrous rollout last October.

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