BLUE BELL, Pa., June 18, 2013 /PRNewswire/ -- Unisys Corporation (NYSE: UIS) today announced that it was competitively selected for the first task order awarded under the Department of the Interior (DOI) Foundation Cloud Hosting Services (FCHS) indefinite delivery-indefinite quantity (IDIQ) contracts.
Under the task order, Unisys will move DOI's Financial and Business Management System (FBMS) to the cloud. DOI is a new client for Unisys.
The time and materials task order has a two-year base period and two three-year option periods, exercisable at the discretion of the government. The base period has an estimated value of $9.6 million; the first option period has an estimated value of $18.3 million and the second option period has an estimated value of $16 million for a total value of approximately $44 million over eight years.
The task order calls for Unisys to transition the FBMS to a secure, cloud environment. FBMS is a mission-critical DOI system based on SAP's Enterprise Resource Planning (ERP) software platform and is utilized across the department and its component bureaus to account for all income and expenditures.
The award addresses an essential component of DOI's five-year "IT Transformation Strategic Plan," issued in 2011, to significantly cut costs with "a 21st century service delivery organization that provides innovative technologies at lower cost to support our mission areas." By moving its ERP system to the cloud, DOI expects to lower costs associated with operating and maintaining the system while providing an innovative and highly accessible service to users.
The task order was issued under the FCHS contract, awarded to Unisys and nine other vendors early this month. Under the IDIQ contract, vendors can provide a variety of services, including cloud storage, secure file transfer, database hosting, web hosting, system development and testing, data center consolidation, emergency preparedness and other services. The IDIQ contract has a three-year base period and four option periods, exercisable at the discretion of the government, through 2023. It is available for use by any federal government agency.
Unisys will base its service delivery operation for the task order at its Application Modernization Center of Excellence (AMCOE) in St. Louis, a facility established in 2010 specializing in delivering innovative application modernization services. Unisys will work with certified SAP cloud hosting provider Virtustream on this task order.
"By moving the SAP FBMS system to the cloud, DOI can cut costs while obtaining a secure and reliable service," said Ted Davies, president, Unisys Federal Systems. "Unisys is looking forward to working closely with DOI to achieve these results and is pleased to have the chance to work with the department's innovative leaders in utilizing modern cloud-based application infrastructures."
Unisys is a worldwide information technology company. We provide a portfolio of IT services, software, and technology that solves critical problems for clients. We specialize in helping clients secure their operations, increase the efficiency and utilization of their data centers, enhance support to their end users and constituents, and modernize their enterprise applications. To provide these services and solutions, we bring together offerings and capabilities in outsourcing services, systems integration and consulting services, infrastructure services, maintenance services, and high-end server technology. With approximately 23,000 employees, Unisys serves commercial organizations and government agencies throughout the world. For more information, visit www.unisys.com.
Any statements contained in this release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements rely on assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Under time and materials contracts, like this task order, contractors are paid for hours ordered and actually delivered in the performance of the contract. Statements in this release regarding the value of the task order are based on the assumption that the hours in the task order estimated as required for the performance of the scope of work will be ordered and delivered. Further because agreements with government agencies are terminable before the end of their terms and are subject to the availability of appropriated funds, there is no guarantee that each year of the task order will continue for its full term. Additional discussion of factors that could affect Unisys future results is contained in periodic filings with the Securities and Exchange Commission.
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RELEASE NO.: 0618/9175
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