Governor Ed Rendell claims the deal which will expire in 2014, will save taxpayers $240 million.
"The Unisys contract is being finalized, administration officials said. It could be put out to bid if the savings appear to be less than projected, but Rendell spokesman Doug Rohanna said that's unlikely to occur.
Unisys' first contract with the state was a seven-year pact signed in 1999 and valued at $621 million, according to the Rendell administration. At that time, it was hailed as an unprecedented contract because of the project's scope. It involved consolidating 17 datacenters into one. That contract had a provision allowing it to be extended for three years. In 2002, it was extended through 2009, at a cost of $252 million.
The latest extension through 2014 is expected to lower the state's costs from $115 million annually to about $80.5 million. Costs will be based on the scope of services provided, which could vary from year-to-year.