The Government of Canada and CGI Sign a 4-Year, $78 Million Contract Extension for Engineering and Technical Services
CGI Group Inc. (TSX: GIB.A; NYSE: GIB), a leading provider of information technology and business process services announces a 4-year, $78 million extension, as per the provisions of the Engineering and Technical Services (ETS) contract it currently holds with the Government of Canada.
This extension was in addition to the initial $91.8 million contract which was awarded to CGI following a competitive Request for Proposal (RFP) process. Since contract award, the Company has been working with Public Works and Government Services Canada (PWGSC) to define, scope and implement Results Base Services (RBS) through a CGI managed services delivery model.
The contract, originally signed in 2007, now includes an extension to move the existing Resource Based ETS contract to a managed-services model, with a focus on outcomes, effective July 1, 2009.
"More and more government agencies are moving towards a longer-term managed services model with companies they rely on to help them succeed in their mission," said Hicham Adra, Senior Vice-President and General Manager, National Capital Region. "CGI has been supplying IT services to the Government of Canada for over 25 years. We have a strong track record in government, and we look forward to continuing that with the services provided to PWGSC."
With over 5,000 professionals dedicated to the public sector and more than $1 billion in revenue from this sector, CGI is one of the largest IT and business process services providers to government in Canada and the United States. The company serves the federal government and 75% of provincial and territorial governments in Canada. This deep expertise enables public sector clients to modernize and transform with services and solutions that improve the citizen experience, increase efficiency and improve accountability.
Founded in 1976, CGI is one of the largest independent information technology and business process services firms in the world. CGI and its affiliated companies employ approximately 26,000 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 of America, Europe, Asia Pacific as well as from centers of excellence in North America, Europe and India. CGI's annualized revenue run rate is currently $3.8 billion and as at June 30, 2009, its order backlog was $11.8 billion. CGI's 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.
Forward- Looking Statements
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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