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Profiting from "homeland security"
From: "Richard M. Smith" <rms () computerbytesman com>
Date: Sun, 23 Oct 2005 20:58:21 -0400
http://online.wsj.com/article/SB113011238023677139.html?mod=technology_main_ whats_news U.S. Scrutinizes Unisys's Billing On TSA Contract By AMY SCHATZ Staff Reporter of THE WALL STREET JOURNAL October 24, 2005 WASHINGTON -- Government investigators are looking at whether Unisys Corp. overbilled for work in a $1 billion contract to provide phone and high-speed Internet networks at airports for the Transportation Security Administration. Investigators are following up on a preliminary internal review that found Unisys may have overcharged TSA for as much as 171,000 hours of labor and overtime. The inquiry was reported yesterday by the Washington Post. A TSA spokesman said the review came after officials of the agency, part of the Department of Homeland Security, "noticed several irregularities" in the contract and referred the matter to the Department of Defense's Defense Contract Audit Agency, which "targeted the same areas of concern." Unisys, among the largest contractors for DHS and TSA, won the contract to build private high-speed data and phone networks for TSA in August 2002. Officials at DHS grew concerned as costs climbed toward the contract's $1 billion cap -- even though the contract had several years to run and Unisys had installed networks in less than half of the 429 U.S. airports it called for. Unisys representatives didn't return calls to comment. The overbilling allegation is the latest concern for the DHS's information technology program, which has been cited several times by federal investigators for insufficient security protections. In August, the DHS inspector general reported "security vulnerabilities continue to exist" in TSA's internal network, which links agency headquarters with airport security directors around the country. TSA hasn't installed a comprehensive testing system and doesn't sufficiently monitor network traffic to prevent potential security breaches, investigators concluded. Unisys, of Blue Bell, Pa., announced plans last week to reduce its work force by 10% while reporting a preliminary third-quarter loss of $54.3 million and a 4% revenue drop. Moody's Investors Service downgraded Unisys's credit-rating outlook on Thursday, citing the company's weaker-than-expected third-quarter results and concerns about its restructuring plan and long-term revenue growth and profitability. _______________________________________________ Fun and Misc security discussion for OT posts. https://linuxbox.org/cgi-bin/mailman/listinfo/funsec Note: funsec is a public and open mailing list.
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- Profiting from "homeland security" Richard M. Smith (Oct 23)