It seems all the noise about CGI Group’s (TSX:GIB.A) participation in the Obamacare fiasco is not hindering the Montreal-based company’s ability to secure U.S. government work.
CGI today announced that the The U.S. Department of Homeland Security has selected its subsidiary, CGI Federal, as a prime technology contractor.
Noting that CGI has a history with the department that dates back to 1996 when it provided IT services to the Coast Guard, management says this new contract might provide an opportunity to expand its footprint within the organization, particularly in mission-critical IT services such as cyber security and big data solutions.
“CGI will support DHS in protecting our nation, its citizens, resources, and critical infrastructure in an increasingly dynamic and sophisticated threat environment,” said Dr. James Peake, Lt. Gen. (Ret), President, CGI Federal. “We are looking forward to continuing and growing our partnership with DHS.”
Late last year, CGI became embroiled in the fallout around the poor performance of the Healthcare.gov site, which had been plagued by problems since launching on October 1st. While the company claimed its role was inherently limited, some, including Marilyn Tavenner, the administrator of the Centers for Medicare and Medicaid Services, blamed the Canadian IT provider for the website’s problems.
In a conversation with Cantech Letter in March, CGI CEO Michael Roach struck a diplomatic but confident tone about the matter.
“We believe that CGI’s role and the facts surrounding this historical and complex initiative will become clear in the fullness of time,” he said.
At press time, shares of CGI Group on the TSX were down 1% to $36.94.