PWGSC inks $91.8M managed IT services deal

Public Works and Government Services Canada (PWGSC) has entered into a $91.8 million IT services contract with CGI Group Inc., under which the Montreal-based IT outsourcer will provide engineering and technical management services to PWGSCbs Information Technology Services Branch (ITSB) over a three-year period.

In working with the federal agency, CGI will provide expertise and resources that are required to maintain and manage ITSB's government-wide infrastructure domains. The two parties will "evaluate and implement technology enhancements to these operating domains over the life of the agreement to transform current service delivery to a results-based managed services model," according to a statement from CGI.

The move is in line with the federal government's initiative towards consolidating and providing shared IT services, through the ITSB, across all federal agencies, said Hicham Adra, a senior vice-president and general manager with CGI.

"PWGSC and the IT Services Branch are undertaking a shared services initiative for all IT across government," said Adra. "They are also moving towards the managed services kind of model and evolving towards that."

PWGSC could not be reached for comment as of press time.

Adra said part of the agreement is to provide business and architectural planning support for ITSB, including software installation and engineering, database support, migration and development of new systems, as well as technology planning.

CGI will also provide administrative support for system migration and customization, database administration, software development, as well as security and access administration.

"To the extent, for example, that (ITSB is) upgrading or introducing new releases of software or customizing applications and changes to the environment, we will be supporting them in making those types of changes," said Adra.

PWGSC's contract with CGI, which came into effect on November 1, will be delivered over the next three years. Under the agreement, the government may opt for four one-year extensions, after the three-year initial contract has been completed, giving the partnership a potential contract value of over $400 million, according to CGI.

Over $1 billion of the company's revenue come from the public sector, representing contracts with federal agencies and 75 per cent of provincial and territorial governments in Canada, according to CGI.

Adra said PWGSC's current arrangement with CGI will be different from what the government agency may have had with other third-party providers in the past, because the ITSB's requirements will be guided by the government's shared services strategy.

"There is potential for work beyond what's been performed in the past, both from a shared systems (perspective), as other departments and organizations come on-board, and for growth," said Adra.

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