CGI Federal Inc. (CGI), a wholly-owned U.S. operating subsidiary of CGI Inc. (TSX: GIB.A) (NYSE: GIB), has been awarded a single award, firm-fixed price contract by the Centers for Medicare & Medicaid Services (CMS) to help improve access to Medicare for millions of beneficiaries by modernizing the agency’s Health Plan Management System (HPMS). By evolving the HPMS through advanced technologies, CGI will help CMS optimize the plan enrollment and compliance processes for more than 800 private health and drug plans currently participating in the Medicare Advantage and Medicare Part D (MAPD) programs. The contract includes a 1-year base period, as well as four 1-year option periods, for a total contract value of US$72M.
CGI will build upon the success of HPMS as a secure, reliable, and high-performing system through modernization initiatives such as integrating intelligent automation, leveraging cloud efficient tools, delivering data analytics and applying Agile delivery methodologies. CGI also will apply new and advanced technologies to help meet increasing stakeholder expectations and enhance cybersecurity to address new threat vectors.
“With more than two decades of experience in delivering complex enterprise information technology projects for HPMS, we are proud to extend our support to further advance the CMS HPMS mission and help transform the accessibility of health plans for Medicare beneficiaries through a secure system,” said Ksheeraja Velangulam, CGI Vice-President, Consulting Services, and Lead for CGI’s HPMS engagement. “Through our comprehensive healthcare industry knowledge and deep technical expertise, we will deliver innovative solutions that enable CMS to meet the evolving expectations of program beneficiaries.”
Under the contract, CGI will provide solutions for optimizing the annual lifecycle activities required for the successful execution of every MAPD plan as well as strategic business and technical solutions to deliver a full-service website designed to optimize the HPMS user experience. With more than 70 software modules of varying sizes and complexity, HPMS supports critical functions impacting 65 million Medicare beneficiaries enrolling into MAPD health plans. HPMS also features a Plan Management Dashboard, which organizes HPMS data and visually presents key performance indicators for CMS and health plan executives.
"CGI understands the current challenges in operationalizing data for the Medicare, Medicaid, and healthcare marketplace communities,” said Steve Sousa, CGI Senior Vice-President & Health and Social Services Business Unit lead. “As the need for evolving digital ecosystem interoperability continues to grow, CGI supports CMS to reinvent digital strategies and optimize operations to improve the beneficiary journey and customer experience."
About CGI Federal Inc.
CGI Federal Inc. (CGI), a wholly-owned U.S. operating subsidiary of CGI Inc., is dedicated to supporting federal agencies to provide solutions for defense, civilian, healthcare, justice, intelligence, and international affairs missions. Founded in 1976, CGI Inc. is among the largest independent IT and business consulting services firms in the world. With 90,500 consultants and professionals across the globe, CGI Inc. 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 Inc. works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. CGI Inc. Fiscal 2023 reported revenue is C$14.30 billion and CGI Inc. 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 and political conditions, additional external risks (such as pandemics, armed conflict, climate-related issues and inflation) and our ability to negotiate new contracts; risks related to our industry such as competition and our ability 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 and other tax programs, the termination, modification, delay or suspension of our contractual agreements, our expectations regarding future revenue resulting from bookings and backlog, our ability to attract and retain qualified employees, to negotiate favorable contractual terms, to deliver our services and to collect receivables, to disclose, manage and implement environmental, social and governance (ESG) initiatives and standards, and to achieve ESG commitments and targets, including without limitation, our commitment to net-zero carbon emissions by 2030, as well as the reputational and financial risks attendant to cybersecurity breaches and other incidents, and financial risks such as liquidity needs and requirements, maintenance of financial ratios, interest rate fluctuations and the discontinuation of major interest rate benchmarks and changes in creditworthiness and credit ratings; as well as other risks identified or incorporated by reference in this press release, in CGI's annual MD&A and in other documents that we make public, including our filings with the Canadian Securities Administrators (on SEDAR+ at www.sedarplus.ca) 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 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 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.
For more information:
Investors
Kevin Linder
Senior Vice-President, Investor Relations
kevin.linder@cgi.com
+1 905-973-8363
Media
Andrée-Anne Pelletier, APR, PRP
Manager, Global Media and Public Relations
an.pelletier@cgi.com
+1 438-468-9118
Mercedes Marx
Director, U.S. Federal Media & Analyst Relations
mercedes.marx@cgifederal.com
+1 571-334-2344
