1. Case Studies of Successful Public Private Partnership Programs in e-Gov
Presented to The World Bank Conference on e-Gov PPP
Dean Merrill, Vice President Consulting
June 25, 2008

2. CGI Today A world-class IT and BPS leader
Approximately 26,500 professionals
End-to-end services
100+ offices serving clients in 16 countries
100+ proprietary business solutions
Among largest independent IT and BPS providers
Focused industry expertise
Client-proximity model provides accountability on-the-ground
Global delivery centers offer remote delivery
Revenue run rate of CDN $3.7B (1)
Founded in 1976
Global delivery model – onshore, nearshore, offshore
Client satisfaction score of 8.8 (2)
Q12008 results, ending December 31, 2007
2007 ranking out of 10; part of CGI’s ISO 9001:2000-certified Client Partnership Management Framework

3. Public Private Partnership (PPP) and Benefits Funding Approach
“A public private partnership can be defined as an agreement between government and private entities for the purpose of delivering a project or service, by sharing of risks and rewards of the venture.”
Benefits-funding is a type of PPP CGI has performed successfully
Refers to vendors being paid as technology and process investments lead to revenue benefits beyond an established baseline.
Traditional Projects and deliverables paid through increased revenue (Funds qualitative and quantitative improvements)
Fixed price, not revenue sharing
Partnership arrangements between public and private sectors as with other PPPs (e.g, shared savings, outsourcing and other performance based approaches).

4. CGI in Tax & Revenue Management Benefits Funded Projects in the U.S.
CGI Footprint in Revenue Agencies
Internal Revenue Service
Kansas
$182 Million
Virginia
$231 Million
Grand Total
$1.55 Billion
Missouri
$55 Million
California
$570 Million
$176 Million
$41 Million
$37 Million
Hawaii
$252 Million
Canada Revenue Agency
Benefits Funded projects
Australian Tax Office
Other Tax and Revenue projects

5. Benefits Estimation and Measurement
Based on detailed analysis
Derived from programmatic changes that will be proposed for the project
Calculated by extrapolating from similar implementations in other States
Intended to be conservative and achievable
Benefits Measurement
Requires a more detailed analysis
Needs to be defensible to external scrutiny
Will provide monthly measures of the specific increases in revenue over a defined baseline due to the project

6. Guiding Principles for Estimating Benefits in Tax and Revenue
Financial benefits typically come from overall improved tax compliance
Improvements in audit and collections typically drive benefits-funded programs
Changes in voluntary compliance are significant, but are difficult to measure in a way that is auditable and can withstand public scrutiny
The significant efficiencies in operations will be utilized within the department to improve customer service
Desirable to fund the project during the project life-cycle
Partners must be committed to success

7. Guiding Principles for Benefits Measurement
State tax agencies, by their very nature, are very much in the public eye
When a State tax agency undertakes a benefits funded project it must be able to withstand the highest level of public scrutiny
The benefits measurement methodology must therefore be a clear, conservative, defensible depiction of identifiable benefits
Important to plan and achieve quick wins

8. Case Study: CGI and the Franchise Tax Board
Faced with significant budget gaps in the early 1990’s
Estimated tax gap of $2.7 Billion
Identified significant opportunities, but could not get approval to proceed
Solution:
Look for strategic partners to share the risks and rewards

9. Success Highlights BETS (Business Tax) - $11 M in new revenue
CAPS (Business Collections) - $37 M in first year, paid for itself in 45 days
BETS (Business Tax) - $11 M in new revenue
Added important data sources for FTB’s Compliance Programs
PASS (Audit Data Warehouse) - $176 M in increased revenue for California
Supports more than 800 staff
ARCS (Personal Collections) - $570 M in increased revenue for California
Utilizes risk models to maximize staff effectiveness
INC (Non Filer) - Generates annual revenue increases in excess of $36 M per year

10. Another California Example
California Child Support Project: teaming the State, IBM, Accenture, and CGI  in implementing a Statewide Child Support System
California just received their certification of the system which resulted in a penalty rebate of $193M. A portion of the project is paid based on programmatic performance improvements such as increased collections.

11. Case Study: State of Virginia Business Challenges
Concern over Virginia’s revenue administration
Critical state auditor report in 1993
Lack of efficiency, poor public image
Aging technology infrastructure
Inflexible tax administration software tools
Data entry, remittance, microfilm and mail opening equipment obsolete and beyond repair
Existing processes and systems could not support customer-centric vision for revenue and collections management
Severe budget constraints

12. Case Study: State of Virginia End State Vision and Approach
Six-year program undertaken to re-engineer all business processes, applying technology where appropriate
New customer-centric practices reinforced with next generation technology
Integrated end-to-end program strategy:
eGov self service
Financial and revenue management systems
Organizational design, change management, & training
Benefits funded through improved collections:
Risk/behavior modeling and development of decision analytics via Strata
CACS for collections case management
CRM and contact management

13. Case Study: State of Virginia-Results
More than $230 million in additional revenue collected ─ with no additional cost to taxpayers
More than 336,000 individuals and 59,000 businesses filed $970 million in tax returns via iFILE through VATAX’s Web site
Fifty percent of new businesses have registered online through iREG, with more than:
480,000 documents accessed through the Policy Library
452,000 filings through Telefile