Business support services group CGI Group Inc (TSX, NYSE: GIB) announced today it secured a four year extension of its Engineering and Technical Services (ETS) contract with the Canadian government worth C$78 million.
The initial C$91.8 million deal was signed in 2007 following a competitive Request for Proposal process.
The company has since worked with Public Works and Government Services Canada to define, scope and implement Results Base Services through a CGI managed services delivery model. The deal now includes an extension to move the existing Resource Based ETS contract to a managed-services model, with a focus on outcomes.
The public sector accounts for about C$1 billion of CGI’s revenues. The group has contracts in place with the governments of Canada and the United States and 75% of Canadian provincial and territorial governments.
CGI recently won a US$52 million operations & maintenance contract from the US government.
CGI added 1% in early trade on the Toronto Stock Exchange following the release of the news.