State of California extends agreement with CGI for the Case Management, Information and Payrolling System

Rhea-AI Summary

CGI (NYSE: GIB) has secured a three-year, US$200-million contract extension with the State of California to continue managing the Case Management, Information and Payrolling System (CMIPS). The system supports California's In-Home Supportive Services program, serving over 850,000 recipients and 760,000 caregivers.

The CMIPS platform processes more than 1.5 million payroll payments monthly, totaling $19 billion annually. CGI's services include comprehensive business process outsourcing and IT services, with improvements focusing on cloud modernization, streamlined payroll processes, and enhanced security measures.

Positive

• Secured substantial US$200-million contract extension for three years
• System manages massive scale with 1.5 million monthly payments totaling $19 billion annually
• Proven track record of successful digital transformation and system improvements
• Large stable client base serving 850,000 recipients and 760,000 caregivers

Negative

• None.

Insights

Government Technology Contracts Analyst

CGI secures $200M California contract extension, strengthening stable government revenue stream and showcasing service reliability in critical social services.

CGI has secured a $200 million three-year contract extension with the State of California to continue providing managed services for the Case Management, Information and Payrolling System (CMIPS). This represents a significant continuation of CGI's relationship with California's In-Home Supportive Services program, which serves over 850,000 recipients and employs more than 760,000 caregivers.

The extension demonstrates client satisfaction and service reliability in a critical government program. CGI's managed services handle substantial transaction volumes - processing over 1.5 million payroll payments monthly, totaling more than $19 billion annually. This renewal strengthens CGI's government sector revenue stability, an attractive quality for investors seeking predictable cash flows.

The announcement highlights CGI's ongoing digital transformation efforts for the program, including cloud migration, document digitization, and DevOps automation. These technical improvements indicate CGI is delivering measurable value while positioning itself for continued relevance through modernization initiatives.

For context, government contracts typically provide more stable, longer-term revenue compared to private sector engagements, though they often yield lower margins. The $200 million figure over three years represents approximately $66.7 million annually, making this a substantial recurring revenue stream. The extension also demonstrates CGI's effectiveness in managing mission-critical systems that process significant financial volumes and serve vulnerable populations - valuable reference points for winning similar contracts.

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cgi.com/newsroom

Enhancements to improve efficiency, security, and accessibility for the state's caregiver payment platform

SACRAMENTO, Calif., July 24, 2025 /PRNewswire/ - CGI (TSX: GIB.A) (NYSE: GIB), one of the world's leading independent technology and professional services firms, today announced a three-year, US$200-million contract extension with the State of California. Under the agreement, CGI will continue delivering end-to-end managed services for the Case Management, Information and Payrolling System (CMIPS), which supports California's In-Home Supportive Services (IHSS) program. The program provides essential care to over 850,000 recipients and employs more than 760,000 caregivers.

As a trusted technology partner, CGI has consistently delivered high-quality solutions to improve the IHSS program. The continued collaboration with the California Department of Social Services (CDSS) has led to improvements in several key areas: streamlined payroll and case management processes, reduced administrative overhead, strengthened security, and improved service delivery for caregivers and those they serve.

CGI will maintain its delivery of comprehensive business process outsourcing (BPO) and IT services, supporting the efficiency, security and accessibility of IHSS payroll processing for caregivers and beneficiaries across the state. Since its inception, CGI's partnership with the state has driven significant advancements in digital transformation, including migrating legacy infrastructure to the cloud, digitizing timesheets and W-2s, and introducing DevOps automation to improve system reliability and speed. The system processes over 1.5 million payroll payments each month, totaling more than $19 billion annually, ensuring that caregivers across California receive timely and accurate compensation while families get the support they need without administrative barriers.

"The multi-year contract renewal with the State of California reflects the vital role CGI plays in modernizing the state's IHSS care infrastructure," said Virginia Williams, Senior Vice-President & Business Unit Leader, U.S. Northwest Operations at CGI. "Our shared roadmap focuses on cloud modernization, AI-powered insights, multilingual mobile experiences, and agile responses to new legislation. We're proud to help strengthen the program so caregivers and those they support receive the efficient, reliable services they deserve."

About CGI
Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 94,000 consultants and professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. CGI Fiscal 2024 reported revenue is CA$14.68 billion and CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com.

View original content:https://www.prnewswire.com/news-releases/state-of-california-extends-agreement-with-cgi-for-the-case-management-information-and-payrolling-system-302512394.html

SOURCE CGI Inc.

FAQ

What is the value and duration of CGI's contract extension with California?

CGI secured a three-year contract extension worth US$200 million with the State of California for the CMIPS system.

How many users does CGI's CMIPS system serve in California?

The system serves over 850,000 recipients and employs more than 760,000 caregivers in California.

What is the monthly payment volume processed by CGI's CMIPS system?

The system processes over 1.5 million payroll payments monthly, totaling more than $19 billion annually.

What improvements has CGI implemented in the California CMIPS system?

CGI has implemented cloud migration, digitized timesheets and W-2s, DevOps automation, and improvements in security, efficiency, and accessibility.

How will CGI enhance the CMIPS system in the future?

CGI plans to focus on cloud modernization, AI-powered insights, multilingual mobile experiences, and agile responses to new legislation.