Meh. What’s another $8 billion now that we have an unlimited debt ceiling? Besides, it’s not as if anyone cares. Obama won, so shut up.
Still, CGI is only the 29th largest federal IT contractor, with about $950 million in contracts in 2012, compared to number one Lockheed Martin’s $14.9 billion. They also don’t make high-profile weapons systems, but rather the guts of government Web sites that rarely bear their names.
That said, they’ve learned quickly, and see the U.S. federal government as their area of biggest growth. CGI Federal’s health-care practice has grown 90 percent year over year, largely due to the Healthcare.gov project. And for a contractor, ballooning projects are a good thing. “In the Federal Government business, we continue to see more extensions and ceiling increases on our existing work, while we further leverage our position on contract vehicles,” said CEO Michael Roach on their latest earnings call. Those “contract vehicles” now amount to $200 billion, which Roach later referred to as a “hunting license.”
“Accordingly, we continue to view U.S. Federal Government as a significant growth opportunity,” Roach continued. CGI Federal now has an $8 billion pipeline of future task orders — doubling its federal business over the period of a year — including big-ticket items such as $871 million for the Defense Information Services Agency, a $143 million contract to do visa processing in China, and a five-year, “indefinite quantity” contract for the Department of Homeland Security and Coast Guard. (It’s also working with state governments too — California, for example, handed it a $399 million contract to revamp its tax processing system).