Working under the Virginia Enterprise Applications Architecture initiative, CGI will manage and upgrade the commonwealth’s technology in key areas such as financial services, human resources, supply chain, and administration. The deal includes two optional three-year renewal periods.

Partnering with CGI on the contract are SiloSmashers Inc and Maximus Inc, two application management firms based in Virginia, and GC Services, a private collection company located in Houston, Texas.

Last November the Commonwealth of Virginia awarded a 10-year contract valued at $2bn to local defense contractor Northrop Grumman Corp. Under terms of that deal, Northrop is responsible for transforming the Commonwealth’s IT infrastructure, including its desktop and network services.

Last year, Virginia signed a human resources outsourcing deal with ACS, and in 2004 it awarded Motorola a $329m contract to design and implement a new digital voice and wireless data communication network.