The U.S. subsidiary of Canadian information technology giant CGI Group has been awarded a share of a $955-million (U.S.) contract by the Environmental Protection Agency to provide IT support services.
CGI Federal Inc. was selected with six other firms, including some small companies, to provide services for seven years.
CGI spokesman Lorne Gorber said the Montreal-based company hopes to win at least $150-million of the projects, that don't need to go for further tenders.
CGI Federal vice-president Kenyon Wells said the contract continues the company's more than 30-year partnership with the U.S. environmental regulator.
"CGI's long-time relationship with EPA allows us to partner with the Agency in support of its environmental regulatory mission," he stated.
Versant Partners analyst Tom Liston said the contract - the ninth government deal announced this year - continues CGI's momentum in the government vertical.
"CGI remains a defensive name given its strength in the government sector. We believe that this contract will be material, although the magnitude of CGI's share under the blanket purchase agreement (BPA) is unknown," he wrote in a report.
On the Toronto Stock Exchange, CGI shares gained 20 cents at $12.95 (Canadian) in midday trading Monday.
CGI, founded in 1976, is one of the largest independent information technology and business process services companies in the world, with about 26,000 employees and operations in 16 countries.
The company has annualized revenue of about $3.8-billion and had an order backlog of $11.8-billion at the end of the quarter ended June 30.