The Centers for Medicare & Medicaid Services (CMS) Center for Consumer Information and Insurance Oversight (CCIIO) has awarded CGI Federal Inc. (CGI), a wholly-owned U.S. operating subsidiary of CGI Group Inc. (NYSE: GIB) (TSX: GIB.A), a contract to build the U.S. government’s federally-facilitated health insurance exchange, Federal Exchange (FX). The contract has an estimated total contract value of US$93.7 million over a two-year base with three, one-year option periods. The US$55.7 million base contract has been awarded.
Under the contract, CGI will work with CCIIO to develop and implement the Federal Exchange in line with the provision in the Affordable Care Act that requires the creation of a competitive health insurance marketplace for States and territories to help bring insurance coverage to 34 million additional Americans.
“We are proud to partner with CCIIO to help more Americans shop for and obtain quality health care coverage through this critical component of the Administration’s national healthcare agenda,” said Cheryl Campbell, Senior Vice-President, CGI.
“We have a unique, cross-sector perspective on health IT that makes us well suited to partner with CMS for success on one of the most visible efforts in CMS history,” added Rich Martin, Vice-President, CGI.
About CGI Federal Inc.
CGI Federal Inc. is a wholly-owned U.S. operating subsidiary of CGI Group Inc., dedicated to partnering with federal agencies to provide solutions for defense, civilian, and intelligence missions. 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 31,000 professionals. CGI provides end-to-end IT and business process services to clients worldwide from offices and centers of excellence in Canada, the United States, Europe and Asia Pacific. As at September 30, 2011, CGI's revenue was $4.3 billion and its order backlog was $13.5 billion. CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB) and are included in both the Dow Jones Sustainability Index and the FTSEXGood Index. (CGI Federal website.)
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 Canadian securities laws. These statements and this information represent CGI’s 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 but 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 IT industry; general economic and business conditions; foreign exchange and other risks identified in the press release, 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), the Company’s 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. You will find more information about the risks that could cause our actual results to differ significantly from our current expectations in the Risks and Uncertainties section.
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