Unisys mulls sale of federal unit

Unisys mulls sale of federal unit

By Susan M. Menke

GCN Staff

DEC. 8'Unisys Corp. yesterday revealed it might sell its U.S. Federal Government Group in McLean, Va., as part of a corporate downsizing after lower-than-expected revenue this year.

Spokeswoman Susan Beck in Blue Bell, Pa., told GCN that federal clients "would not be damaged, whatever strategic avenue we pursue. We will honor the contracts we have."

They include Unisys Federal Online, SelectIT, General Services Administration information technology and professional services schedules, NASA's Scientific and Engineering Workstation Procurement II, National Institutes of Health Electronic Computer Store II and ImageWorld programs, and several blanket purchasing agreements and basic ordering agreements.

Beck said Unisys chairman Lawrence A. Weinbach yesterday told financial analysts that the company would need "to acquire or divest" to continue with the federal purchasing model. "To compete in that market requires a good amount of size," she said. "We have not said we will definitely divest. We are working with an investment banker to consider options."

Unisys, however, does plan to "eliminate a lot of our commodity business," Beck said.

U.S. Federal Government Group vice president and general manager Daniel F. Moats was not available for comment.

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