FAIRFAX, VA, May 28, 2019 - CGI (NYSE: GIB) (TSX: GIB.A) announced it has been awarded a five-year contract by the Centers for Medicare and Medicaid Service (CMS) to enhance and maintain an optimized cloud environment for the Health Plan Management System (HPMS), CMS's central data repository for Medicare Advantage and Part D health care plans.
The company will leverage its eGovernment best practices and long-term partnership to help innovate delivery on behalf of beneficiaries and ensure that the system is monitored and optimized on a continuous basis. Worth over $60 million, the contract extends CGI's partnership with HPMS—which dates back to the creation of the system in 2004—for an additional five years and represents the first full and open project awarded under CMS's Strategic Partners Acquisition Readiness Contract (SPARC).
HPMS is a web-enabled, robust, portal for 14,500 users, fully accessible to those with disabilities (Section 508-compliant). CGI has historically delivered HPMS software development and operations support that annually supports 5,000+ active health plans, 1,000+ contract applications and 400+ formularies. With a broad user base comprised of internal staff, private health and drug plans, pharmaceutical manufacturers, and more, AAHPMS acts as the main conduit of health plan-related information into CMS. HPMS helps to manage, monitor and track the annual lifecycle activities required by CMS for the successful vetting, signup and execution of every Medicare Advantage and Part D plan.
"CGI has a deep appreciation for the critical nature of HPMS and we are proud to extend our partnership with CMS on the system," said CGI Federal President Tim Hurlebaus. "We believe that our experience and proposed strategies will continue to drive the technology transformation of HPMS."
Under the agreement, CGI is tasked to build a robust and dynamic reporting solution to ensure that 26 applications within HPMS operate effectively and efficiently and optimize an Amazon Web Services (AWS) cloud environment while simultaneously deploying continuous integration and continuous delivery. Additionally, CGI will help HPMS remain compliant with all federal requirements, developing and deploying enhancements using both Agile and hybrid iterative approaches. CGI will also modernize a subset of HPMS applications to a more application programming interface (API)/microservices-based architecture, using open source technologies.
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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.
For more information:
Investors, Lorne Gorber, Executive Vice-President, Investor and Public Relations, lorne.gorber@cgi.com, +1 514-841-3355
Media, Jennifer Goodman Horowitz, Vice-President, Marketing & Communications, jennifer.horowitz@cgifederal.com, +1 703-227-4636
