CGI-AMS Strategic Sourcing Experts Make Case for Saving Taxpayers Mone

CGI-AMS Strategic Sourcing Experts Make Case for Saving Taxpayers Money

    Business Editors/Government Writers

    SACRAMENTO, Calif.--(BUSINESS WIRE)--March 30, 2005--

Contractors with Department of General Services Say State is Already Saving Millions of Dollars
    CGI-AMS, experts in government procurement, tomorrow will demonstrate to state lawmakers that California's Strategic Sourcing Initiative is on track to deliver at least $100 million in savings over the three years of the contract. CGI-AMS, the wholly-owned U.S. operating subsidiary of CGI Group Inc. (CGI) (TSX:GIB.SV.A) (NYSE:GIB), will demonstrate to state lawmakers how California is applying innovative procurement techniques to renegotiate contracts for lower prices and save taxpayers money.
    "In only a few short months, strategic sourcing has already saved California taxpayers millions of dollars," said Anna Gadbois, CGI-AMS vice president. "We have been working with the state Department of General Services (DGS) to carefully use California's enormous purchasing power to fulfill Governor Schwarzenegger's vision: 'to get the best service and the best products for the best price.'"
    Gadbois added: "We welcome the opportunity to correct several published inaccuracies regarding our company and our performance. CGI-AMS is extremely experienced helping state and local governments to modernize procurement -- having delivered spend management solutions to hundreds of customers. We have delivered that service since the 1970s, and have a very high repeat business rate with our customers in California and across the country. Also, we structured this contract so Californians would not have to assume any risk. We don't get paid until California saves money. We believe in this program and expect it to do great things for state government."
    CGI-AMS will also state that its $25,000 contribution was used to support a bipartisan bond campaign. This contribution was simply to support a bipartisan event -- led by Governor Arnold Schwarzenegger and State Controller Steve Westly -- to sell $15 billion in bonds to help solve the state budget crisis.
    "The plan had statewide support from the state's Republican and Democratic parties," said Gadbois. "We also look forward to correcting the record on our contract with the Flanigan Law firm -- who has provided advisory services to the company since 2001, not 2004 as has been reported."
    Starting in December 2004, with CGI-AMS on-board, the state has used strategic sourcing to lower bulk purchase pricing on office supplies, police cars, and single drug pharmaceutical contracts. The more products and services California negotiates with the strategic sourcing program, the more money state taxpayers save. California currently spends nearly $5 billion a year on discretionary goods and services.
    In addition, all negotiated contracts through strategic sourcing are independently audited by a third party to insure savings for the state.
    DGS has a three-year contract with CGI-AMS to deliver at least $100 million in savings. CGI-AMS is only paid when the state saves taxpayers money -- and never more than 10.5 cents for every Dollar saved.

    ABOUT CGI-AMS: CGI-AMS is the wholly owned U.S. operating subsidiary of CGI Group Inc. Founded in 1976, CGI is among the largest independent information technology and business process services firms in North America. CGI and its affiliated companies employ approximately 25,000 professionals. CGI provides end-to-end IT and business process services to clients worldwide.

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CONTACT: CGI-AMS Angela Morris, 916-830-1130

KEYWORD: CALIFORNIA INTERNATIONAL CANADA INDUSTRY KEYWORD: GOVERNMENT BANKING PRODUCT SOURCE: CGI-AMS

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