GDIT Awarded $450 Million Financial Systems Modernization Contract by the Centers for Medicare and Medicaid Services

General Dynamics Information Technology (GDIT), a business unit of General Dynamics (NYSE:GD), announced today that it was awarded a $450 million contract by the Centers for Medicare and Medicaid Services to continue operating and modernizing its Healthcare Integrated General Ledger Accounting System (HIGLAS). The contract has an eight-month base period with seven option years.

HIGLAS is a single, integrated accounting system that standardizes and centralizes federal financial accounting for all of CMS’s programs. As one of the largest accounting systems in the world, HIGLAS enables CMS to enhance the oversight of its financial operations and achieve accurate, reliable and timely accounting of the agency’s programs. HIGLAS processes approximately 4.5 million Medicare claims daily and over $2.0 trillion in payments annually in support of more than 147 million Medicare and Medicaid beneficiaries.

Under the contract, GDIT will continue to partner with CMS to modernize the HIGLAS system, in addition to managing critical day-to-day operation. GDIT will also leverage its artificial intelligence/machine learning capabilities to analyze trends and patterns to determine potential anomalies in accounting data. Additionally, GDIT will provide management services and host the HIGLAS primary data processing and disaster recovery systems to ensure 24/7/365 system reliability.

“Our continued support of HIGLAS enables us to further advance CMS’s commitment to improve the quality, efficiency and fiscal soundness of its most mission-critical systems,” said Kamal Narang, GDIT vice president and general manager for Federal Health. “We look forward to continuing our partnership with CMS and reimagining ways to deliver agile, innovative and secure solutions that enable millions to access healthcare services.”

GDIT has supported CMS for more than 40 years. In addition to HIGLAS, GDIT hosts one of the largest clouds in the federal government that supports tens of millions of Americans through health insurance marketplace websites. The company also deploys machine learning to detect fraud, waste and abuse among billions of Medicare claims.

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