Contract worth up to $150 million will support Comprehensive Loan Program and other agency initiatives
BLUE BELL, Pa., July 21, 2010 –The United States Department of Agriculture (USDA) Rural Development agency has awarded a contract to Unisys (NYSE: UIS) for applications modernization and end user support services.
Under this indefinite delivery/indefinite quantity (IDIQ) contract vehicle, Unisys will support the full range of the agency’s programs serving the citizens of rural America, including the Comprehensive Loan Program (CLP) and other initiatives that provide financial assistance related to the U.S. Recovery and Reinvestment Act.
The contract has one base year and four one-year options, which are exercisable at the sole discretion of the government. The estimated value of the base year of the contract is $29.5 million, and the contract has a ceiling value of $150 million over five years.
Unisys will provide services to support all facets of the agency’s mission. The USDA Rural Development’s financial programs support public infrastructure projects in rural America and promote economic development by supporting loans to rural businesses. The agency has a $140 billion portfolio of loans and will administer $20 billion in loans, loan guarantees and grants this fiscal year.
The contract, which represents a significant expansion of Unisys work at Rural Development, covers all aspects of application software development, maintenance and operations to support the agency’s loan program. Unisys will provide services including analysis, software testing, help desk, standards compliance verification, disaster recovery support, systems programming, database management and training.
Unisys will also assist the agency in its transition to a service-oriented architecture (SOA) framework to allow the agency to integrate disparate applications across multiple computing platforms.
“This contract represents a significant move for Rural Development towards a modernized and consolidated IT support environment that can make the agency more efficient and cut costs,” said Gene Zapfel, Unisys Federal Systems partner responsible for USDA. “The initiatives led by Rural Development are vital to U.S. economic health, and Unisys is proud to work with the agency to support our country’s rural communities.”
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 ceiling value of the contract are based on the assumption that all options will be exercised and the contract will continue for its full five-year term. Under multiple-award, indefinite delivery, indefinite quantity contracts there is no guarantee that any contractor will receive any task order award. 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 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.
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
RELEASE NO: 0721/8979
Unisys is a registered trademark of Unisys Corporation. All other brands and products referenced herein are acknowledged to be trademarks or registered trademarks of their respective holders.
O'Keeffe & Company Contact: