Source: Widepoint Awarded FTC Contract
Widepoint Corp. (WYY), through it's wholly-owned subsidiary, ORC, announced today that they have been awarded a contract by the Federal Trade Commission to provide end-to-end managed PKI services related to the imminent rollout of HSPD-12. The Federal Trade Commission has approximately 1,070 employees -- so though not a blockbuster agency award in terms of size -- the award should provide incremental software and engineering revenues in the current quarter, while also adding digital certificate revenue over an eight month period, with options to renew for up to another four years. Meantime, with the rollout of HSPD-12 set to begin on October 27th, the Interior Department's National Business Center has awarded International Business Machines Corp. (IBM), which is partnering with Lockheed Martin Corp. (LMT) -- a customer of ORC's, a contract that supports the issuance of 400,000 PIV (Personal Identity Verification) smart cards through the year 2011. We observe the IBM/Lockheed relationship with interest, and certainly would not be shocked to see benefits accrue to Widepoint as a result. Furthermore, with additional agencies -- including the Labor, Social Security Administration, Health and Human Services, State Department, and Dept. of Veterans Affairs -- potentially opting to meet the pending HSPD-12 deadline on their own -- apart from the GSA (BearingPoint Inc. (BE) contract under protest) or NBC options, the possibility of additional contract announcements remains, and Golden Mean Stock Report remains enthusiastic about Widepoint stock.