TSA awards contract to keep technology services program going

The Transportation Security Administration has awarded a contract worth up to $750 million to keep a key technology services program going.

TSA announced on Jan. 3 that it was awarding the contract to Unisys Corp. for the Information Technology Managed Services program, which links the agency's headquarters, operations center and staff at airports across the country through a high-speed computer network.

Unisys originally was contracted to manage the program in August 2002. That contract was expected to reach its cost ceiling of $1 billion this month, however, prompting TSA to award a new contract to the company.

The contract was awarded on a sole-source basis. It is an indefinite delivery-indefinite quantity contract with a term of one base year and two one-year options that can be executed at the discretion of the government.

Unisys spokeswoman Lisa Meyer said the new contract is not an extension of the previous one because some aspects of the original were not included. TSA spokesman Darrin Kayser said the agency will put several elements of the previous contract up for new competition, such as the purchase of new equipment, information assurance support services and wireless telecommunications services.

He said the contract announced Jan. 3 was given to Unisys on a sole-source basis so the agency did not incur costs associated with transitioning to a new contractor.

Unisys, however, came under scrutiny by the Defense Contract Audit Agency in 2004 for overbilling TSA on the program. The Washington Post reported last fall that two audits found that the company had charged up to three times more per hour for work than was justified. TSA had requested the audits.

TSA and the Homeland Security Department's inspector general have ongoing reviews of Unisys' work.

"My understanding is that the irregularities occurred back when we had a very small number of contract employees, and we went to DCAA to help us get a handle on [the contract]," Kayser said. "We are working with DCAA and Unisys to ensure that it doesn't happen again."

Kayser added that part of the reason contract costs increased was because TSA's work expanded.

Unisys issued a statement after the Post's story last fall.

"The nation was in crisis, and there were enormous time pressures in meeting tight deadlines," the company said. "It is not unusual in complex government contracts for the government and the contractor to have issues arise regarding contract obligations."

Meyer said the company had no additional comment.