CGI takes on $399M California tax project

CGI Group Inc. will help budget-challenged California improve its tax collection and processing procedures under a contract that will be worth $399 million for five and a half years, with an additional five-year option for maintenance and operation valued at $139 million.

CGI announced April 26 that it has received an intent-to-award letter for the state of California’s Franchise Tax Board (FTB) Enterprise Data to Revenue (EDR) project, a performance-based, benefits-funded contract where CGI is paid from a percentage of the increased revenues generated.

The company’s solution will support fundamental changes to the board’s tax processing that will generate an estimated $2.8 billion in additional revenue for the state by 2016-2017.

CGI has a long history of working with the tax board and from 1994 through 2003, the company had projects that brought in $784 million in additional revenue for the state, the company said.

The FTB's goal of providing taxpayers and businesses with greater transparency is strengthened through a new EDR “taxpayer folder” that centralizes account status information and presents a common information view for both FTB staff members and taxpayers, CGI said.

The new online approach modernizes the way taxpayers will be able to request extensions, make payments and find information. In addition, the secure website will have expanded e-mail and online chat features.

CGI’s new solution should improve income tax return processing system for people and businesses in California, accelerating collections while minimizing fraud, the company said.

In addition, this platform and solution approach is repeatable and CGI plans to promote it in other states as governors across the country continue to struggle with record-breaking deficits, the announcement said.

CGI Group Inc., of Montreal ranks No. 82 on Washington Technology’s 2010 Top 100 list of the largest federal government contractors.