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

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

3. 3 Public Private Partnership (PPP) and Benefits Funding Approach  Public Private Partnership  GICT World Bank Presentation: “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. 4 CGI in Tax & Revenue Management Benefits Funded Projects in the U.S.

5. 5 Benefits Estimation and Measurement  Benefits Estimation  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. 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. 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. 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. 9 Success Highlights  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. 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. 11 Case Study: Single Window of Government “If 20 agencies are improving their service to a citizen by moving it online, but not working together, it still means the citizen has to walk through 20 doors. It just digitizes the confusion” Mark Forman, Associate Director for IT and e-Government US Office of Management and Budget

12. 12 Environment & L.G. Case Study: New Brunswick Service Delivery Model DNRE Health Finance Education Public Safety OTC Call Centre WEB Customers Service New Brunswick

13. 13 Service New Brunswick and CGI  Millions of transactions with citizens and business  Collecting hundreds of millions dollars on behalf of 16 departments and over 40 Municipalities  Hundreds of different Web based services  42% of transactions through electronic channels  « Single Window » access to government services  Front office and back office processes  It was estimated the net economic benefit to the province in 2002 was C$141 Million equivalent to.72% of the provincial GDP

14. 14 Case Study: Commonwealth 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

15. 15 Case Study: Commonwealth 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 partly through improved collections:  Risk/behavior modeling and development of decision analytics via Strata  CACS for collections case management  CRM and contact management

16. 16 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

17. 17 Thank You: Contact for More Information Dean C. Merrill Vice President Consulting U.S. Central South Virginia Strategic Account 703-267-8053 dean.merrill@cgi.com