FAIRFAX, VA, Aug. 13, 2019 - CGI (NYSE: GIB) (TSX: GIB.A) announced it has been awarded a Blanket Purchase Agreement (BPA) by the U.S. Department of Housing and Urban Development's (HUD) Government National Mortgage Association ("Ginnie Mae") to modernize its suite of software applications that help lenders secure mortgages for home buyers. Under the multiple award BPA, CGI will provide comprehensive software development services and actively incorporate Agile, DevSecOps and continuous integration/continuous delivery (CI/CD) services to help Ginnie Mae serve its clients more interactively and efficiently.
Ginnie Mae established the software development services contract as part of its overall effort to modernize its securitization platform technology, processes and related policies. The goal is to help improve user experience in response to the growing need for increased transparency and improved service delivery to its issuers and investors. The multiple-award BPA has an estimated program value of $127 million across all BPA holders over five years (one base year plus four option years) if all options are exercised.
"This win draws upon our deep experience in the banking industry and extends our footprint into the government's hallmark housing program," said CGI Federal President Tim Hurlebaus. "We fully expect that our comprehensive approach and global presence and experience in the banking and securitization markets—coupled with our strong record of on-time, on-budget delivery and high customer satisfaction scores—will help Ginnie Mae successfully bring its mortgage securitization application offerings into the future."
Established in 1968 as a wholly-owned government corporation within HUD, Ginnie Mae's mission is to bring global capital into the housing finance system while minimizing risk to the taxpayer. With more than $2 trillion of assets under management, the organization has provided liquidity and stability, serving as the principal financing arm for government mortgage loans and ensuring that mortgage lenders have the necessary funds to provide loans to customers.
Under this software development services BPA, Ginnie Mae intends to build a comprehensive platform that integrates functional and technological capabilities into a common infrastructure, updating its applications as new technologies become available. By modernizing the applications that support the securitization business the organization can not only work more efficiently with banks, non-depository institutions, and investors but also better manage risk and deliver capital to housing markets servicing first time homebuyers, veterans and those in rural America.
About CGI Federal
CGI Federal Inc. is a wholly-owned U.S. operating subsidiary of CGI Inc., dedicated to partnering with federal agencies to provide solutions for defense, civilian, healthcare and intelligence missions. Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With approximately 77,500 consultants and professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. With Fiscal 2018 reported revenue of C$11.5 billion, CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com.
Forward-looking information and statements
This press release contains "forward-looking information" within the meaning of Canadian securities laws and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable United States safe harbors. All such forward-looking information and statements are made and disclosed in reliance upon the safe harbor provisions of applicable Canadian and United States securities laws. Forward-looking information and statements include all information and statements regarding CGI's intentions, plans, expectations, beliefs, objectives, future performance, and strategy, as well as any other information or statements that relate to future events or circumstances and which do not directly and exclusively relate to historical facts. Forward-looking information and statements often but not always use words such as "believe", "estimate", "expect", "intend", "anticipate", "foresee", "plan", "predict", "project", "aim", "seek", "strive", "potential", "continue", "target", "may", "might", "could", "should", and similar expressions and variations thereof. These information and statements are based on our perception of historic trends, current conditions and expected future developments, as well as other assumptions, both general and specific, that we believe are appropriate in the circumstances. Such information and statements are, however, by their very nature, subject to inherent risks and uncertainties, of which many are beyond the control of CGI, and which give rise to the possibility that actual results could differ materially from our expectations expressed in, or implied by, such forward-looking information or forward-looking statements. These risks and uncertainties include but are not restricted to: risks related to the market such as the level of business activity of our clients, which is affected by economic conditions, and our ability to negotiate new contracts; risks related to our industry such as competition and our ability to attract and retain qualified employees, to develop and expand our services, to penetrate new markets, and to protect our intellectual property rights; risks related to our business such as risks associated with our growth strategy, including the integration of new operations, financial and operational risks inherent in worldwide operations, foreign exchange risks, income tax laws, our ability to negotiate favorable contractual terms, to deliver our services and to collect receivables, and the reputational and financial risks attendant to cybersecurity breaches and other incidents; as well as other risks identified or incorporated by reference in this press release, in CGI's annual and quarterly MD&A and in other documents that we make public, including our filings with the Canadian Securities Administrators (on SEDAR at www.sedar.com) and the U.S. Securities and Exchange Commission (on EDGAR at www.sec.gov). Unless otherwise stated, the forward-looking information and statements contained in this press release are made as of the date hereof and CGI disclaims any intention or obligation to publicly update or revise any forward-looking information or forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. While we believe that our assumptions on which these forward-looking information and forward-looking statements are based were reasonable as at the date of this press release, readers are cautioned not to place undue reliance on these forward-looking information or statements. Furthermore, readers are reminded that forward-looking information and statements are presented for the sole purpose of assisting investors and others in understanding our objectives, strategic priorities and business outlook as well as our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. Further information on the risks that could cause our actual results to differ significantly from our current expectations may be found in the section titled "Risk Environment" of CGI's annual and quarterly MD&A, which is incorporated by reference in this cautionary statement. We also caution readers that the above-mentioned risks and the risks disclosed in CGI's annual and quarterly MD&A and other documents and filings are not the only ones that could affect us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial could also have a material adverse effect on our financial position, financial performance, cash flows, business or reputation.
SOURCE CGI Inc.
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