Unisys Corporation (NYSE: UIS) announced today that its Australian subsidiary has signed a contract with the Australian Department of Defence to provide a range of IT support services to 460 Defence locations across Australia. The contract, with an initial term of five years following a transition period of an estimated 18 months duration, has a value estimated at approximately US$225/A$240 million, with the potential for two future contract extensions, each of two years duration.
Under the contract, Unisys will provide a range of IT support services, including network security and infrastructure support, server and desktop support to all sections within the Australian Defence Force. Unisys will also standardize IT support processes nationally. These IT services support key operations of Defence, including the Australian Defence Force.
Tony Henshaw, Asia Pacific Vice President Global Outsourcing and Infrastructure Services, Unisys said, “We are very pleased to have been chosen for this important project with the Department of Defence. We look forward to supporting the Australian Defence by providing IT services on a national scale that are designed to be robust, flexible and highly secure and we are focused on moving quickly to implement a smooth and effective transition.
“Unisys and its personnel will be required to undergo the same security clearance processes as Defence personnel. Unisys has been an ongoing member of the Defence Industry Security program for nearly 10 years, membership to which requires conformity to Australian Government and Department of Defence security requirements,” he said.
Under the contract, Unisys anticipates streamlining IT support services nationally by resolving second and third level helpdesk queries faster and more effectively. Unisys also plans to improve coordination and consistency of IT processes nationally, so that the 460 Defence locations will receive the same high quality level and speed of service. These measures are expected to help reduce the cost of IT operations for Defence while providing improved services.
The contract continues a string a recent major wins for Unisys with the Australian public sector. In the last two years, Unisys has signed a contract with the Department of Immigration and Citizenship (DIAC) for the delivery of selected IT services including a single dedicated service desk, secure gateway services, end to end user computing services and cross functional services. This follows an earlier contract to provide biometric solutions and services as part of the DIAC Enhanced Border Control Program. The Australian National Audit Office has also recently renewed a contract with Unisys for the delivery of selected IT services for a further two years, extending a ten year outsourcing relationship.
About Unisys
Unisys is a worldwide information technology services and solutions company. We provide consulting, systems integration, outsourcing and infrastructure services, combined with powerful enterprise server technology. We specialise in helping clients use information to create efficient, secure business operations that allow them to achieve their business goals. Our consultants and industry experts work with clients to understand their business challenges and create greater visibility into critical linkages throughout their operations. For more information, visit www.unisys.com.
Forward Looking Statement
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 anticipated value of the contract are based upon assumptions regarding future volumes of services to be performed, the prices for those services remaining constant, and performance of the contract continuing for its full term. Because Defence requirements for services will vary over time, with a portion of the revenue varying based on the level and types of services performed; because pricing may be subject to adjustment under certain circumstances, including as a result of volumetric changes and periodic benchmarking surveys; because the transition period may take more or less time than anticipated, with fees for transition services adjustment accordingly; and because the contract is terminable by the Department of Defence before the end of its term on the payment of a specified fee, the anticipated value of the contract is not guaranteed. Additional discussion of factors that could affect Unisys future results is contained in periodic filings with the Securities and Exchange Commission