Unisys Awarded $92 Million Task Order for Desktop Management Services at the U.S. Defense Finance and Accounting Service
Task Order Re-compete Extends Unisys Longstanding Relationship with Department of Defense Agency
BLUE BELL, Pa. – The General Services Administration (GSA) has awarded the Defense Finance and Accounting Service (DFAS) Desktop Management Initiative (DMI) II task order to Unisys (NYSE: UIS). DMI II is a cost plus award fee task order that provides a full suite of managed desktop and help desk services for more than 14,000 DFAS desktop and laptop computers. The task order is valued at an estimated $92 million if all options are exercised, and is a recompete of the DMI I task order Unisys has held since March 2004. The new agreement has a one-year base award valued at an estimated $16 million and currently funded at $11.5 million and allows for four one-year options, exercisable at the discretion of DFAS.
Established in 1991, DFAS is the accounting arm of the U.S. Department of Defense (DoD) and the largest accounting and finance agency in the world – processing nearly $2 billion in payments daily. DFAS processes salaries and pensions for 5.3 million active and retired military members and their dependants; disburses payments to DoD contractors; and processes all expenses related to DoD business travel.
Under the new agreement, Unisys will continue to provide desktop support and end-user services, including engineering support, centralized software distribution, asset management, patch management, malware protection, and a full range of security and protection services. Unisys will also continue to support DFAS’ mission-critical applications as well as initiatives to improve the overall effectiveness of DoD financial management through consolidation, standardization and integration of finance and accounting procedures.
In addition, Unisys will operate the agency’s enterprise help desk, which supports more than 14,000 DFAS system users across 13 locations in the United States and abroad. Unisys will continue to create flexible help-desk staffing models based on call patterns to ensure higher service levels, increase cost savings, and improve productivity. Unisys will also leverage new technologies to support virtualization aimed at reducing overall costs while continuing to ensure a secure infrastructure.
The award represents a validation and continuation of work performed by Unisys under the DFAS DMI I contract, awarded in 2004. DFAS saved approximately $7 million annually as a result of the Services Unisys delivered under DMI I.
Unisys Federal Systems recently achieved ISO/IEC 20000-1:2005 (ISO 20K) certification for its desktop management services line and programs, including those that it provides under the DMI contract. Administered by the International Organization for Standardization, ISO 20K is the first internationally recognized standard aimed at IT Service Management. Unisys is one of a small number of companies to receive the certification based on its ability to implement an integrated system for effectively delivering managed services.
“As federal agencies work to reduce costs, increase productivity, and enhance security, they need solutions to create a more centralized and standardized environment,” said Jim Geiger, managing partner, Department of Defense, Unisys Federal Systems. “Unisys has set a precedent for achieving results based on DMI I and we look forward to continuing to deliver the high-quality IT support and services that will help DFAS continue to advance its objectives and goals.”
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 more than 28,000 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. In particular, statements in this release regarding the total value of this award are based on the assumption that all options will be exercised and the contract will continue for its full five year term, that the actual cost of performance will be approximately the same as the currently projected cost and that Unisys will be awarded a reasonable award fee. 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 the contract 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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