U.S. Treasury awards CGI Federal contract to modernize digital services

FAIRFAX, Va. - The U.S. Department of the Treasury’s Office of the Comptroller of the Currency (OCC) has awarded CGI Federal Inc. a Blanket Purchase Agreement to modernize its content management system and digital services, according to a company press release issued Wednesday. The contract adds to CGI’s growing portfolio as a prominent player in the IT Services industry, with the company generating $11.4 billion in revenue over the last twelve months.

The agreement calls for CGI to implement a cloud-based platform designed to enhance site performance, strengthen security measures, and improve user experience for the OCC. The modernization effort aims to enable faster updates to the agency’s digital services. According to InvestingPro analysis, CGI maintains a solid financial health score of GOOD, supported by stable operations and strong market position.

"CGI employs a phased approach built on scalability and sustainability, addressing immediate needs while simultaneously laying a foundation to meet future demands," said David Kwon, Vice-President Consulting Services for Treasury at CGI.

The company stated it will deliver a secure digital infrastructure to support the OCC’s long-term mission in this phase of the project.

CGI Federal is a wholly-owned U.S. operating subsidiary of CGI Inc. (NYSE:GIB) (TSX:GIB.A), which provides technology and professional services to federal agencies. The company reports having nearly 8,000 professionals working with government clients.

The press release noted that CGI is engaged in using emerging technologies such as artificial intelligence across various sectors to enhance clients’ operational capabilities, accelerate processes, and reduce risk.

Financial terms of the agreement were not disclosed in the announcement. Currently trading at $90.15, near its 52-week low, CGI’s stock appears undervalued according to InvestingPro’s Fair Value analysis. Investors seeking detailed insights can access CGI’s comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, along with additional financial metrics and analysis tools.

In other recent news, CGI has secured a 10-year contract with the State of New Jersey to continue developing and supporting the State Integrated Recovery Operations Management Systems (SIROMS). This platform, initially created for recovery efforts post-Superstorm Sandy, has managed the distribution of over $7.2 billion in recovery funds. Additionally, CGI has been awarded a contract by the Texas Comptroller of Public Accounts to modernize the state’s financial systems with a cloud-based enterprise resource planning solution. In Sweden, CGI has entered a multi-year framework agreement with Svenska kraftnät to provide IT consulting services aimed at enhancing the country’s electricity grid infrastructure.

Furthermore, Barclays has partnered with CGI to integrate the CGI Trade360 solution with Komgo’s Konsole platform, enhancing transaction transparency and processing efficiency in trade finance operations. CGI has also formed a strategic partnership with Finnish retail services company Kesko to accelerate Kesko’s digital transformation, providing various IT services and supporting digital development initiatives. These developments highlight CGI’s ongoing efforts to expand its influence in diverse sectors through strategic collaborations and contracts.

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