The Commonwealth of Virginia Signs $300 million Contract to Reform Business and Technology

The Commonwealth of Virginia has selected CGI-AMS Inc., the wholly-owned U.S. operating subsidiary of CGI Group Inc., (NYSE: GIB) as its private sector partner for a sweeping initiative to transform the state’s business and information technology program. The initial value for the seven-year contract for CGI-AMS is expected to be up to US$300 million with two optional three-year renewal periods.

The Virginia Enterprise Applications Architecture (VEAA) public-private partnership will help the Commonwealth maintain its status as the best managed state in the nation by consolidating and modernizing processes and technology for financial, human resources, supply chain, and administrative management. The scope of the initiative is presently in executive branch agencies, with potential applicability to the judicial and legislative branches and educational institutions. The ongoing contract is subject to meeting performance standards and funding approval by the Virginia General Assembly.

“This agreement marks the largest effort in the country to improve business processes and consolidate technology for better business management,” said Governor Warner. “We owe it to our citizens to help government perform more effectively and more productively, saving taxpayers millions of dollars annually, allowing Virginia to capture millions more in previously uncollected revenue and federal cost reimbursements, and increase the transparency of these back office operations.”

“Through the leadership of the Governor and the General Assembly, the VEAA initiative heralds the beginning of a new era for government efficiency,” said Donna Morea, president of CGI-AMS. “This program will be a model for any public sector organization seeking to create more effective ways to get the job done.

“CGI-AMS’s strengths as a business partner lie in its understanding of the business of government and technology, and our experience working with the Commonwealth on other transformational projects that have delivered measurable benefits to Virginia’s citizens,” Morea said.

Team CGI-AMS will begin the VEAA initiative immediately by deploying managed services for collections and cost recovery. These services are anticipated to produce revenue that will help finance the program over time. Team CGI-AMS includes project partners SiloSmashers, a Virginia-based company recognized for program management and transformative e-government efforts; Maximus, a premier Virginia-based cost-recovery firm that has worked on revenue-related projects in 47 states; and GC Services, the largest private collection agency in the United States.

CGI-AMS has been a long-time partner to the Commonwealth of Virginia, introducing innovative business processes and technologies that increase efficiencies, improve services and enhance revenue collections. Through the Virginia Tax Partnership, a project with the Department of Taxation, the Commonwealth realized more than $300 million in previously uncollected revenue owed, and now continues to generate nearly $72 million in additional revenue each year to fund state services. CGI-AMS has collaborated with the Commonwealth on eVA-nationally acclaimed as the largest government procurement portal in the United States, with almost $8B in spend through the system since 2001, and recognized by numerous national awards for the savings and business results that it has created for Virginia government.

Additional information about the Virginia Enterprise Applications Architecture initiative is available at http://dgs.virginia.gov/ppea_eap.htm.