) received a task order from the Internal Revenue Service (IRS)
under the Total Information Processing Support Services. As per the
contract, Unisys will update, operate and maintain the agency's
Excise Files Information Retrieval System (ExFIRS).
The task order, which is valued at approximately $4 million in
the base year, is a fixed price order with a one-year base period
and four one-year options. The task order will be worth $20 million
provided all the options are exercised.
Using the mandated ExFIRS as provided by Congress, the IRS
verifies the collection of fuel taxes. The IRS also analyzes motor
fuel industry information to identify areas of noncompliance with
As per the contract, Unisys will be required to maintain ExFIRS
code in compliance with legislative mandates and changes in IRS
processes. In addition, Unisys will provide break/fix software
development services as and when required.
Last week, Unisys received an $80 million contract from the
American Red Cross. As per the contract, Unisys will provide the
latter with the company's IT managed services for a five-year
term. The contract also has two one-year renewal options.
As per the terms of the contract, Unisys shall deploy its
support solutions to Red Cross across the U.S. and Puerto Rico.
Using an integrated IT services management (ITSM) platform, the
company shall deploy its on-site, IT asset management and service
desk support management services at Salt Lake City, Utah and
Rochester, New York. This shall then effectively allow the Red
Cross workers to easily communicate with each other using channels
such as telephone, internet chat, e-mail etc.
Operating from Eagan, Minnesota, Unisys shall provide its
disaster recovery backup services to the Red Cross unit at Salt
Lake City. These services include installing remote infrastructure
management services, which would pervasively integrate with all
segments in order to battle IT threats.
The company is currently concentrating on business opportunities
in fewer, more profitable markets in the information technology
We continue to maintain a Neutral recommendation on Unisys.
Nevertheless, we have a Zacks Rank #1 on the stock, which
translates into a short-term rating of Buy.
UNISYS (UIS): Free Stock Analysis Report
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