Unisys Wins Bid to Continue Operating and Maintaining One of World's Largest RFID Networks for Department of Defense

BLUE BELL, PA - Unisys Corp (NYSE: UIS) today announced that the U.S. Department of Defense (DoD) awarded the company a follow-on contract to enhance visibility in the worldwide military logistics supply chain. The contract term is one base year and three one-year options, exercisable at the discretion of the government.

The contract, which includes firm fixed-price and time and materials work, is worth approximately $28 million in the first year, if the government continues to order time and materials work at the current level. The total value of the contract could be approximately $112 million if the government exercises all options and continues to order time and materials work at the current level. In addition, the contract provides for the award of additional fees if performance metrics are exceeded and the imposition of penalties if the metrics are not met.

Award of this contract allows Unisys to continue its efforts on the RFID program that began 13 years ago. Unisys has been working with DoD to develop, maintain and enhance an in-transit visibility system utilizing radio frequency identification technology. Providing visibility almost instantaneously into the location of supplies and shipments enables the military to increase its agility to supply units and soldiers with critical supplies in a timely manner, focus on mission-critical activities and respond quickly to mission changes.

"We are excited about the opportunity to continue our partnership with DoD on this program, operating and evolving one of the world's largest RFID networks," said Greg Baroni, president, Unisys Federal Systems.

"War fighters labor in austere circumstances and environments. Unisys, with partners L-3 Communications TMSD and WFI Government Services, is proud to support our soldiers globally with this network," he added.

How RFID Enables the Military

Unisys tracks approximately 125,000 shipments of supplies each week, including ammunition, food/rations and water, medical supplies, vehicles, vehicle parts and aircraft. Attached to these shipments are RFID tags that store information vital to the soldier.

Unisys tracks shipments across all modes of transportation - truck, rail, ship and air - to their final destinations in combatant commands worldwide.

Fixed and handheld readers send and receive radio signals to and from the tags. Because data written to each tag are replicated among five servers, users worldwide have access to the same information on each item. Consequently, decision-makers at all levels of command and throughout the logistics supply chain can plan, prioritize and redirect shipments accordingly and collaboratively.