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Recently, Unisys Corporation (UIS - Analyst Report) 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 excise law.

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 (IT) marketplace.

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.

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