U.S. Customs and Border Protection contract, worth up to an estimated $129 million, builds upon successful Unisys work on the Western Hemisphere Travel Initiative
BLUE BELL, Pa., October 25, 2010 –U.S. Customs and Border Protection (CBP), an agency within the Department of Homeland Security, has awarded a contract to Unisys (NYSE: UIS) to build an advanced system to better identify people and vehicles entering and exiting the U.S. via its land borders with Mexico and Canada.
The Land Border Integration (LBI) contract has one firm fixed-price base period and four one-year options, which are exercisable at the sole discretion of the government. The value of the base period of the contract is approximately $29 million and the estimated value of each option year is approximately $25 million. The contract has a ceiling value of $350 million over five years, allowing for additional scope to be added at the government’s discretion.
The new contract follows Unisys work on the Western Hemisphere Travel Initiative (WHTI) contract, awarded in 2008. WHTI, which was implemented on June 1, 2009, at all land and sea ports of entry, uses automated license plate reader (LPR) technology to screen vehicles crossing the border, as well as radio frequency identification (RFID) technology to confirm citizenship and identity of travelers with WHTI-approved, RFID-enabled travel documents.
CBP and Unisys are capitalizing on the initial success, foundation and investment of the WHTI implementation and are expanding the project using innovative technologies and processes that will provide further efficiencies to the land border. LPRs are the core technology component of the “triangle strategy,” which leverages WHTI investments in inbound processing with outbound enforcement operations and Border Patrol checkpointsto ensure that information is available as needed at each point in the CBP process.
The U.S. General Services Administration recently recognized CBP and partner agencies for their work on WHTI with the 2010 Interagency Resources Management Conference (IRMCO) Team Award. CBP also recently received a 2010 Excellence.Gov Award from the American Council for Technology/Industry Advisory Council for significant improvements in mission delivery.
“The WHTI contract has been an important homeland security initiative” said Ted Davies, president of Unisys Federal Systems. “With LBI, we look forward to continuing our work with CBP to help enhance United States border security.”
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 contract value of the contract are based on the assumption that all options will be exercised and the contract will continue for its full term. 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. In addition, the option years are primarily firm-fixed-price contracts but do have a cost reimbursement component. The estimated value of the option years assume the actual costs of performance of the cost reimbursement portions will be approximately the same as the estimated costs, which may not be the case. Additional discussion of factors that could affect Unisys future results is contained in periodic filings with the Securities and Exchange Commission.
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.
RELEASE NO: 1025/8996
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