U.S. Department of State selects CGI to deliver visa application processing services in 25 countries across Europe and Asia

Rhea-AI Summary

CGI Federal Inc., a subsidiary of CGI Inc. (NYSE: GIB) (TSX: GIB.A), has been awarded three task orders by the U.S. Department of State to support visa application processing services in 25 countries across Europe and Asia. The task orders, awarded under the Global Support Strategy for Overseas Consular Support Services 2.0 (GSS 2.0) contract, have a combined 2-year base period funded value of US$37.4M and a total contract value of US$137.3M.

CGI will provide critical processing support for non-immigrant and immigrant visas through 2032, leveraging its CGI Atlas360 solution to enhance the application process. The company processed almost 5.5 million visa applicants globally in fiscal year 2023 and has over a decade of experience managing the DoS visa application process in 70 countries.

Positive

• Awarded three task orders by U.S. Department of State for visa processing services
• Combined 2-year base period funded value of US$37.4M
• Total contract value of US$137.3M
• Expansion of services to 25 countries across Europe and Asia
• Leveraging CGI Atlas360 solution to enhance application process efficiency
• Processed 5.5 million visa applicants globally in fiscal year 2023

Negative

• None.

Insights

Government Contracts Analyst

This contract award is a significant win for CGI, extending their long-standing relationship with the U.S. Department of State. The $137.3 million total contract value over multiple years provides a stable revenue stream and enhances CGI's position in the government services sector. The scope covering 25 countries across Europe and Asia demonstrates CGI's global capabilities and trust from a major U.S. government agency.

Key points to consider:

• The base period funded value of $37.4 million provides immediate revenue recognition
• Long-term contract through 2032 offers visibility and recurring revenue
• Expansion of services using CGI Atlas360 solution showcases the company's technological capabilities
• Building on existing relationships and past performance (5.5 million visa applicants processed in FY2023) indicates strong competitive positioning

While positive, investors should note that this contract represents a relatively small portion of CGI's overall revenue, given its $26 billion market cap. However, it reinforces CGI's strong position in government contracting and potential for future growth in this sector.

Stock Market Symbols
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www.cgi.com/newsroom

Task orders extend collaboration between CGI and State Department to increase process efficiency and strengthen security and customer service

FAIRFAX, Va., Oct. 22, 2024 /PRNewswire/ - CGI Federal Inc. (CGI), a wholly-owned U.S. operating subsidiary of CGI Inc. (NYSE: GIB) (TSX: GIB.A), today announced the award of three task orders by the U.S. Department of State (DoS) to support end-to-end visa application processing services for the Bureau of Consular Affairs across Scandinavia, Central Europe, China and Southeast Asia. These task orders were awarded under CGI's Global Support Strategy for Overseas Consular Support Services 2.0 (GSS 2.0) Indefinite-Delivery, Indefinite-Quantity (IDIQ), multi-award prime contract and have a combined 2-year base period funded value of US$37.4M, and a combined total contract value of US$137.3M. Under these newly awarded task orders, CGI will continue to provide critical processing support for non-immigrant and immigrant visas through 2032 at U.S. embassies and consulates in 25 countries across Europe and Asia. 

CGI will leverage its CGI Atlas360 solution to provide visa applicants the opportunity to manage their application process, including inquiries, scheduling and document tracking. The solution also gives applicants more channels through which they can pay their visa fees and receive their documents. Government officials at embassies and consulates also benefit from reduced administrative burdens, greater transparency and easier auditing.

"As a trusted collaborator with the Bureau of Consular Affairs, we will continue to deliver technical expertise, combined with our international experience and mission understanding to optimize the performance of U.S. consular processes in these dynamic regions of the world," said Lacy Perry, CGI Senior Vice-President Consulting-Delivery, International Affairs business unit.

"We are evolving the user experience while streamlining and automating processes that lead to a smoother, more efficient and customer-centric visa application process for applicants," said Jason Dee, CGI Senior Vice-President, International Affairs Business Unit Lead. "Our work with the Bureau demonstrates their trust in CGI to deliver critical services such as intake logistics, communications and document processing."

CGI has more than a decade of experience managing the DoS visa application process in 70 countries and, in fiscal year 2023, processed almost 5.5 million visa applicants globally. Last year, CGI announced the extension of its support for consular affairs for visa processing work in India.

About CGI Federal
CGI Federal Inc. (CGI), a wholly owned U.S. operating subsidiary of CGI Inc., is dedicated to partnering with 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 90,000 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 CA$14.30 billion and CGI Inc.'s 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 harbours. All such forward-looking information and statements are made and disclosed in reliance upon the safe harbour provisions of applicable Canadian and United States securities laws. Forward-looking information and statements include all information and statements regarding CGI Inc.'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 Inc., 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 favourable 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 Inc.'s annual and quarterly MD&A and in other documents that we make public, including 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 Inc. 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 Inc.'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 Inc.'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 total contract value of CGI's new task orders for visa processing services?

The total contract value of CGI's new task orders for visa processing services is US$137.3M.

How many countries will CGI provide visa processing services for under the new task orders?

CGI will provide visa processing services for 25 countries across Europe and Asia under the new task orders.

What solution will CGI use to manage the visa application process?

CGI will leverage its CGI Atlas360 solution to manage the visa application process, including inquiries, scheduling, and document tracking.

How many visa applicants did CGI process globally in fiscal year 2023?

CGI processed almost 5.5 million visa applicants globally in fiscal year 2023.

What is the stock symbol for CGI Inc. on the NYSE?

The stock symbol for CGI Inc. on the NYSE is GIB.