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CGI Federal Selected as Prime Contractor for GSA OASIS

Zacks Equity Research

CGI Federal Inc, a unit of CGI Group, Inc. (GIB), announced its selection as a prime contractor in a multi-billion dollar contract awarded by the General Services Administration (GSA.V). The contract will allow CGI Federal to participate in an unlimited number of professional services contracts.

The contract was granted under a new vehicle known as One Acquisition Solution for Integrated Services (:OASIS). This will enable federal agencies to procure high-value professional services along with supporting information technology (IT) solutions under a single contract, saving time and money.

CGI Federal is one of the 74 awardees of the “indefinite delivery indefinite quantity” (:IDIQ) contract. Under the multi-award contract, the company will be able to compete for billions of dollars in complex, professional services task orders for the U.S. federal government.

The task orders will cover projects for program management, logistics, engineering, consulting, scientific and financial services across all U.S. governmental agencies. They will also include IT solutions as an ancillary service.

Montreal-based CGI Group is now approved as prime contractor under both the Alliant and OASIS vehicles of the federal government. OASIS will prove to be a vital solution for many government agencies including the U.S. Air Force, U.S. Army and the U.S. military.  Notably, in Dec 2013, the U.S. Air Force signed an agreement with GSA to use the contract for professional services.

CGI Group had developed the problem-plagued federal health insurance exchange website last year. The program’s online clearing house HealthCare.gov failed to effectively manage the tasks of financial data processing for the applicants, thus preventing people from signing up for health insurance under the Affordable Care Act.

It took two months to straighten out the mess, after which CGI Group was replaced by Accenture plc (ACN) as prime contractor of HealthCare.gov in last Jan.

CGI Group currently holds a Zacks Rank #2 (Buy). Other notable companies in the computer services industry are Ebix Inc. (EBIX), sporting a Zacks Rank #1 (Strong Buy) and Lionbridge Technologies Inc. (LIOX) holding a Zacks Rank #2.

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