US state signs $300M IT contract with CGI-AMS

05.01.2006
The state of Virginia has signed a seven-year, US$300 million IT contract with Fairfax, Va.-based CGI-AMS Inc., a wholly-owned subsidiary of CGI Group Inc., to consolidate and modernize enterprise applications used by the executive branch of the state's government, according to Tim Bass, enterprise applications program director for the Virginia state government.

The price tag for the initiative CGI-AMS is undertaking, known as the Virginia Enterprise Applications Architecture project, could grow if the state exercises two three-year renewal options, Bass said, although funding for the modernization effort depends on approval by the Virginia General Assembly.

'This project is all about redesigning our administrative, financial, human resource and supply chain management processes in ways that integrate them, streamline them,' Bass said. The state is looking for 'new technology that implements those processes in a way that makes us more efficient, more effective and able to get services out faster and better to the citizens and businesses of Virginia," he added.

The enterprise applications project is part of Virginia's IT Transformation Initiative, Bass said. In November, Northrop Grumman Corp. was awarded a 10-year $2 billion contract to help the state transform and improve its IT infrastructure.

CGI-AMS's partners on the executive branch effort are Fairfax, Va.-based SiloSmashers, Reston, Va.-based Maximus Inc. and Houston-based GC Services. That team plans to immediately deploy managed services for collections and cost recovery, according to a statement. Those services are expected to produce revenue that will be used to help finance the program over time, CGI said.

Bass said the project will be done in three phases, each of which must meet performance standards., and the state is now asking the General Assembly for $30.5 million to pay for the first phase. That initial effort is expected to last two years.