CGI CONTRACT EXTENDED BY COMMONWEALTH OF VIRGINIA; STATE REAPS BENEFITS OF eVA PROCUREMENT SYSTEM
Celebrates $20B Purchase Milestone, $280M Cost Savings
CGI Group Inc. (TSX: GIB.A; NYSE: GIB), a leading provider of information technology and business process services, today announced the Commonwealth of Virginia extended its contract for CGI's award-winning Electronic Procurement System (eVA). The deal, worth $70 million extends the program to June 2016. Since CGI initially implemented the system in 2001, the Commonwealth used eVA to purchase $20 billion of products and services, with $11.6 billion purchased from small, minority or women-owned business, while saving the state and taxpayers more than $280 million.
"eVA has introduced a whole new level of procurement transparency and accountability to state officials and the general public and it has leveled the playing field for small, women, and minority-owned businesses to participate in the state's business opportunities," said Governor Timothy M. Kaine, Commonwealth of Virginia. "eVA has increased the Commonwealth's efficiency, reduced the cost of government, and allowed us to leverage our buying power, all critical objectives during these tough budget times."
The Commonwealth partnered with CGI to develop eVA in 2001 to streamline the statewide purchasing process by funneling procurement activities into a single electronic portal, with more than five million products available and over 38,000 private vendors registered. Since 2001, eVA has been recognized on both national and international levels for its excellence in electronic commerce and business regulation. Through the program, the Commonwealth cut order processing costs up to 50 percent and reduced processing time in some cases up to 70 percent.
"This milestone marks the continued success of the eVA solution in providing cost efficiency and effectiveness for the Commonwealth," said Rich Sliwoski, Director of the Commonwealth's Department of General Services. "By reaching our procurement goals and objectives, more than 171 state agencies and 575 local governments are able to buy goods and services at the best value from a single online source, thereby saving money for the Commonwealth and allowing us to focus on providing the best service to our citizens."
"Programs like eVA can help states and localities manage through difficult economic times while continuing to provide vital services to their citizens," said Caroline Rapking, Vice President of CGI's U.S. state and local government industry group. "Our partnership with the Commonwealth has become a model for how public-private partnerships can successfully deliver cost savings and better services to the public."
Founded in 1976, CGI Group Inc. is one of the largest independent information technology and business process services firms in the world. CGI and its affiliated companies employ approximately 25,500 professionals in over 100 offices across 16 countries. CGI provides end-to-end IT and business process services to clients worldwide from offices in Canada, the United States, Europe, Asia Pacific as well as from centers of excellence in North America, Europe and India. CGI's annual revenue run rate stands at $3.8 billion and at March 31, 2009, CGI's order backlog was $12.0 billion. CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB) and are included in the S&P/TSX Composite Index as well as the S&P/TSX Capped Information Technology and MidCap Indices. Website: www.cgi.com.
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All statements in this press release that do not directly and exclusively relate to historical facts constitute "forward-looking statements" within the meaning of that term in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and are "forward-looking information" within the meaning of sections 138.3 and following of the Ontario Securities Act, as amended. These statements and this information represent CGI Group Inc.'s ("CGI") intentions, plans, expectations and beliefs, and are subject to risks, uncertainties and other factors, of which many are beyond the control of the Company. These factors could cause actual results to differ materially from such forward-looking statements or forward-looking information. These factors include and are not restricted to the timing and size of new contracts, acquisitions and other corporate developments; the ability to attract and retain qualified members; market competition in the rapidly-evolving information technology industry; general economic and business conditions, foreign exchange and other risks identified in the Management's Discussion and Analysis ("MD&A") in CGI's Annual Report on Form 40-F filed with the U.S. Securities and Exchange Commission (filed on EDGAR at www.sec.gov), and in CGI's annual and quarterly MD&A and Annual Information Form filed with the Canadian securities authorities (filed on SEDAR at www.sedar.com), as well as assumptions regarding the foregoing. The words "believe," "estimate," "expect," "intend," "anticipate," "foresee," "plan," and similar expressions and variations thereof, identify certain of such forward-looking statements or forward-looking information, which speak only as of the date on which they are made. In particular, statements relating to future performance are forward-looking statements and forward-looking information. CGI disclaims any intention or obligation to publicly update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on these forward-looking statements or on this forward-looking information.
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