Earlier this week,
) won a contract from the Department of Homeland Security (DHS) to
compete for task orders with 29 other companies under the Tactical
Communications Equipment and Services contract vehicle. Pertaining
to a total term period of five years (including three option
years), this indefinite delivery/indefinite quantity (IDIQ)
contract has a potential capped value of $3 billion.
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The federal government hopes to improve its legacy mission-critical
public safety communications system with state-of-the-art
interoperable, digital IP-based solutions which would allow for the
seamless integration of voice, data and video. Not only the DHS but
the White House along with the Interior, Justice and State
departments of the U.S. can gain access to services under the
There are a total of five categories under this contract vehicle
within which Unisys shall compete to gain task orders in two of
them; one of them being infrastructure services and operations and
the other, maintenance services. Previously, the company used to
have a good experience in providing tactical communication support
solutions to the DHS' components like the Transportation Security
Administration and the National Programs. However, it would be
interesting to see how Unisys serves the federal government and
other agencies under this prestigious new vehicle of which it is a
Unisys has been on quite a spree of winning government contracts of
late. On June 21, 2012, the company was awarded a contract from The
National Institutes of Health (NIH) to compete for task orders
under the Chief Information Officers-Solutions and Partners 3
(CIO-SP3) contract vehicle. This contract received by the company
from the DHS marks the second prestigious federal panegyric within
a span of just seven days.
The company also keeps an eye out for making technological
advancements for its customers on a continual basis. On June 26,
2012, Unisys launched a new cloud-based IT Service Management
(ITSM) solution platform. With this solution its clients can now
easily start using an ITIL-based system at a cheaper cost.
However, it is important to be aware of similar competitor moves in
the industry. On June 19, 2012,
) was selected by Mindshare for providing consumer insight services
in the U.S., Europe and Australia for its CORE platform.
Unisys currently retains a Zacks #3 Rank, which translates into a
short-term 'Hold' rating. However, we presently maintain our
'Neutral' recommendation on the stock.