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100% benefits-funded IT modernization project will help State
increase revenues, transparency and taxpayer service
FAIRFAX, VA, April 26 /CNW Telbec/ - CGI Group Inc. (NYSE: GIB) (TSX:
GIB.A), a leading provider of information technology and business
process services, announced it has received an intent-to-award letter
for the State of California's Franchise Tax Board (FTB) Enterprise Data
to Revenue (EDR) project. The contract will be valued at approximately
$399 million for 5.5 years, with a five-year option for maintenance and
operation valued at an additional $139 million. EDR will be a
performance-based, benefits-funded contract where CGI is paid from a
percentage of the increased revenues generated.
CGI's innovative solution will support fundamental changes in FTB's tax
processing that will generate an estimated $2.8 billion in additional
revenue for the State by 2016-2017, helping to narrow its substantial
tax revenue gap.
The Franchise Tax Board's key business goal to provide taxpayers and
businesses with greater transparency is strengthened through a new EDR
"taxpayer folder" which centralizes account status information and
presents a common information view for both FTB staff and taxpayers.
The new online approach modernizes the way taxpayers will be able to
request extensions, make payments and find information. In addition,
the secure Website will have expanded email, and online chat features.
"FTB has a well-deserved national reputation for using technology to
make the taxpayer's and the State's jobs easier while taking maximum
advantage of existing systems and data," said Josetta Bull, CGI
Vice-President and strategic account manager. "CGI is proud to support
FTB in reducing California's tax revenue gap while continuing to build
public confidence in government." CGI's prior work for FTB includes a
ground-breaking, multi-program effort to increase revenues that yielded
$784 million in incremental benefits for the State from 1994-2003.
CGI's new solution will deliver an innovative, faster and more efficient
income tax returns processing system for both individuals and
businesses in California, accelerating collections while minimizing
fraud. In addition, this platform and solution approach is repeatable
and CGI plans to promote it in other states, as governors across the
country continue to struggle with record-breaking deficits.
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 December 31, CGI's
annualized revenue was approximately C$4.5 billion and its order
backlog was approximately C$13.1 billion. CGI shares are listed on the
NYSE (GIB) and the TSX (GIB.A) and are included in both the Dow Jones
Sustainability Index and the FTSE4Good Index. Website: www.cgi.com.
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.
SOURCE CGI GROUP INC.
For further information:
Senior Vice-President, Global Communications and
Vice-President, US Communications