CGI has performed well for tax office and health care website

Within the last week, CGI has become part of the public conversation as the state Department of Taxation (DOTAX) seeks funding from the Legislature to upgrade the current system we developed nearly 14 years ago.

Unfortunately, some of the things being said have perpetuated an inaccurate characterization of CGI and its partnership with the state of Hawaii.

In 1999, DOTAX awarded CGI a contract through a competitive procurement process to modernize its aging mainframe computer systems, improving taxpayer compliance and delinquent tax collection.

CGI delivered on our contractual obligations during our 12-year partnership with DOTAX. The system’s performance exceeded original projections, and has performed effectively throughout its life cycle.

An editorial that ran Sunday in the Star-Advertiser cites $87 million in "compensation" to CGI as evidence of government waste ("State wasting cash but no one accepts blame," Our View, Nov. 10). The opposite is true. It is important to note, CGI’s contract with DOTAX was performance-based — we made the upfront capital investment in the technology and did not get paid unless the project was successful. This type of contract model is rare and speaks to CGI’s confidence in its abilities. We assumed all risk by receiving payment for services based only on the new tax revenues that were collected.

Further, CGI’s system enabled Hawaii to collect more than $385 million in delinquent taxes that would have otherwise remained uncollected.

The state certified that CGI completed all project activities in its contract and DOTAX took over full operation of all CGI systems in June 2011 after the CGI contract concluded.

Lowell Kalapa, president of the Hawaii Tax Foundation, was quoted at the time by The Honolulu Advertiser as saying, "To me it’s money well spent because you wouldn’t have gotten it anyway. Any kind of movement to computerize the state system to make it more efficient is money well spent because of the return on investment there."

The editorial also mentioned CGI’s current contract with the Hawaii Health Connector as further evidence of government waste. Again, we disagree.

While it is true that the Hawaii Health Connector decided to launch two weeks after the targeted Oct. 1 date, the Connector’s system is successfully processing applications and enrollments. It has been live without interruption with the exception of planned maintenance windows since it launched on Oct. 15 — despite allegations to the contrary.

CGI, with our Honolulu office and more than 40 locally based professionals and partners, remains committed to supporting the Hawaii Health Connector in its important work to bring quality, affordable health insurance to Hawaii residents. The process has been complex, challenging and unprecedented — unlike anything accomplished before.

Today, our commitment remains the same. We will continue to support the Hawaii Health Connector in their efforts to fully realize an online marketplace where all the residents of Hawaii can purchase affordable health coverage.