CGI wins $34.4M contract at CMS' Center for Program Integrity

Rhea-AI Summary

CGI (NYSE: GIB) has secured a $34.4 million contract from the U.S. Department of Health and Human Services to implement an API Gateway at the Centers for Medicare and Medicaid Services (CMS). This five-year project is designed to enhance data sharing and combat fraud in Medicare and Medicaid programs. The implementation aims to streamline operations, potentially saving CMS and taxpayers millions. CGI's recent contracts also include a $33 million support contract for the Medicare Appeals System and a $100 million redesign task order for the CMS Provider Enrollment System.

Positive

• Awarded a $34.4 million contract for API Gateway implementation, enhancing fraud detection in Medicare and Medicaid.
• Streamlining data sharing could save CMS and taxpayers millions.
• Recent contracts include a $33 million Medicare Appeals System support and a $100 million CMS Provider Enrollment redesign.

Negative

• None.

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System implementation aimed at reducing fraud, waste and abuse in Medicare and Medicaid programs

FAIRFAX, Va., Aug. 25, 2021 /PRNewswire/ - CGI (NYSE: GIB) (TSX: GIB.A) was awarded a five-year, $34.4 million contract for the implementation of the API Gateway—an application programming interface that will aggregate data from multiple source systems—at the U.S. Department of Health and Human Services' Centers for Medicare & Medicaid Services' (CMS) Center for Program Integrity (CPI). The first implementation of this scale and type for CMS, it will create a streamlined, data-sharing solution that advances CPI's mission of detecting and combating fraud, waste and abuse in the Medicare and Medicaid programs.

The API Gateway implementation aims to improve CPI's ability to securely share Medicare provider data and achieve data liberation with openness and collaboration, using full lifecycle management and governance. The implementation enables system users, such as law enforcement and the Office of the Inspector General, to access and analyze real-time information and proactively implement strategies to reduce fraud, waste and abuse. This major evolution from the previous "pay and chase" practice will potentially save CMS and taxpayers millions of dollars and unnecessary resources.

"Implementing the API Gateway will enable real-time data sharing between Medicare and state Medicaid, while reducing redundant screening checks and operational costs," stated Steve Sousa, Senior Vice-President, Consulting Services for CGI Federal. "We are pleased to provide this solution and continue our long-standing partnership with CMS. CGI is proud to contribute to the HHS/CMS team for API Life Cycle Management."

CGI was also recently awarded two other contracts at CMS, including the $33 million Medicare Appeals System (MAS) support contract and the $100 million CMS Provider Enrollment, Chain and Ownership System (PECOS) 2.0 redesign and modernization task order.

About CGI Federal
CGI Federal Inc. is a wholly-owned U.S. operating subsidiary of CGI Inc., dedicated to partnering with federal agencies to provide solutions for defense, civilian, healthcare and intelligence missions. Founded in 1976, CGI is among the largest IT and business consulting services firms in the world. With 78,000 consultants and other professionals across the globe, CGI 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 works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. With Fiscal 2020 reported revenue of C$12.16 billion, CGI 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 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.

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SOURCE CGI Inc.

FAQ

What is the value of the contract CGI won for the CMS project?

CGI was awarded a $34.4 million contract for the API Gateway implementation at the CMS.

When was the contract awarded to CGI for CMS?

The contract was awarded on August 25, 2021.

What is the main goal of the API Gateway being implemented by CGI?

The API Gateway aims to reduce fraud, waste, and abuse in Medicare and Medicaid programs.

What other contracts has CGI recently secured at CMS?

CGI has also secured contracts including a $33 million support contract for the Medicare Appeals System and a $100 million redesign for the CMS Provider Enrollment System.