DLH Awarded OASIS+ GWAC ID/IQ Contract Vehicle

Rhea-AI Summary

DLH Holdings Corp. (NASDAQ: DLHC) has secured a significant Governmentwide Acquisition Indefinite Delivery/Indefinite Quantity (GWAC ID/IQ) contract through the One Acquisition Solution for Integrated Services (OASIS+) program. The company won positions in all five domains it bid for, including Research and Development Services, Technical and Engineering Services, Intelligence Services and Solutions, Logistics Services and Solutions, and Management and Advisory Services.

The contract, which can be utilized by all federal agencies including the Defense Health Agency, CDC, and Department of Defense, has a base period of five years with an additional five-year option period. Notably, OASIS+ has no ceiling or cap on awards. The contract award follows proposals submitted in June 2023 and represents a significant expansion of DLH's addressable market and competitive opportunities.

Positive

• Secured positions in all five domains bid for in the OASIS+ contract
• Contract has no ceiling or cap on potential awards
• 10-year potential contract duration (5-year base + 5-year option)
• Expands addressable market across multiple federal agencies

Negative

• None.

Insights

Government Contracts Expert

The OASIS+ GWAC award represents a strategic expansion of DLH's federal contracting capabilities across five critical domains. The contract's structure as an unrestricted IDIQ with no ceiling provides significant revenue potential over the potential 10-year period. Winning positions across R&D, Technical Engineering, Intelligence, Logistics and Management services demonstrates DLH's broad capabilities and strong past performance. The inclusion of major agencies like the Defense Health Agency and CDC as primary users aligns perfectly with DLH's healthcare and public health expertise.

A simplified explanation: Think of this like getting approved for multiple unlimited credit cards that only government agencies can use to buy services from you. While it doesn't guarantee sales, it gives you the ability to compete for a much larger pool of government business.

Federal Market Analyst

The timing and scope of this award are particularly noteworthy within the federal contracting landscape. OASIS+ represents the next generation of the highly successful OASIS program, which has historically facilitated billions in federal spending. For a company of DLH's size ($112M market cap), securing positions across all five targeted domains provides disproportionate upside potential. The vehicle's flexibility and lack of ceiling creates opportunities to pursue larger-scale contracts that might have been previously out of reach.

In simpler terms: This is like a small local restaurant chain suddenly getting approved to open locations in every major airport in the country. While they still need to win individual locations, the potential for expansion is dramatically increased.

ATLANTA, Jan. 06, 2025 (GLOBE NEWSWIRE) -- DLH Holdings Corp. (NASDAQ: DLHC) (“DLH” or the “Company”), a leading provider of digital transformation and cybersecurity, science research and development, and systems engineering and integration, today announced that it has been awarded a Governmentwide Acquisition Indefinite Delivery/Indefinite Quantity (“GWAC ID/IQ”) contract to deliver complex professional services and advanced capabilities to various federal agencies. The One Acquisition Solution for Integrated Services (“OASIS+”) contract is an expansive suite that may be used by all federal agencies. The Defense Health Agency, Centers for Disease Control and Prevention, and the Department of Defense are among the major users of this contracting vehicle.

This important award has been a long time in the making, with proposals originally submitted during June 2023. Through this contract vehicle, DLH won a position on all five of the domains for which it submitted a bid: Research and Development Services, Technical and Engineering Services, Intelligence Services and Solutions, Logistics Services and Solutions, and Management and Advisory Services. DLH is one of many prime awardees of the OASIS+ contracts, which includes a base period of five years with one option period of five additional years. OASIS+ has no ceiling nor cap on awards.

“Securing positions on high-value, multiple award ID/IQ contracts is vital to our company’s long term organic growth strategy,” said Zach Parker, DLH President and CEO. “This award materially expands our addressable market and access to bids in important competition areas through which we can leverage our differentiating capabilities.”

About DLH

DLH (NASDAQ: DLHC), a Russell 2000 company, enhances technology, public health, and cyber security readiness missions through science, technology, cyber, and engineering solutions and services. Our experts solve some of the most complex and critical missions faced by federal customers, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,800 employees dedicated to the idea that “Your Mission is Our Passion,” DLH brings a unique combination of government sector experience, proven methodology, and unwavering commitment to innovative solutions to improve the lives of millions. For more information, visit www.DLHcorp.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or DLH`s future financial performance. Any statements that refer to expectations, projections or other characterizations of future events or circumstances or that are not statements of historical fact (including without limitation statements to the effect that the Company or its management “believes”, “expects”, “anticipates”, “plans”, “intends” and similar expressions) should be considered forward looking statements that involve risks and uncertainties which could cause actual events or DLH’s actual results to differ materially from those indicated by the forward-looking statements. Forward-looking statements in this release include, among others, statements regarding estimates of future revenues, operating income, earnings and cash flow. These statements reflect our belief and assumptions as to future events that may not prove to be accurate. Our actual results may differ materially from such forward-looking statements made in this release due to a variety of factors, including: the risk that we will not realize the anticipated benefits of acquisitions (including anticipated future financial performance and results); the diversion of management’s attention from normal daily operations of the business and the challenges of managing larger and more widespread operations; the inability to retain employees and customers; contract awards in connection with re-competes for present business and/or competition for new business; our ability to manage our debt obligations; compliance with bank financial and other covenants; changes in client budgetary priorities; government contract procurement (such as bid and award protests, small business set asides, loss of work due to organizational conflicts of interest, etc.) and termination risks; the impact of inflation and higher interest rates; and other risks described in our SEC filings. For a discussion of such risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in the Company’s periodic reports filed with the SEC, including our Annual Report on Form 10-K for the fiscal year ended September 30, 2024 as well as subsequent reports filed thereafter. The forward-looking statements contained herein are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about our industry and business.

Such forward-looking statements are made as of the date hereof and may become outdated over time. The Company does not assume any responsibility for updating forward-looking statements, except as may be required by law.

CONTACTS:
INVESTOR RELATIONS
Contact: Chris Witty
Phone: 646-438-9385
Email: cwitty@darrowir.com

FAQ

What are the 5 domains DLH (DLHC) won in the OASIS+ contract?

DLH won positions in Research and Development Services, Technical and Engineering Services, Intelligence Services and Solutions, Logistics Services and Solutions, and Management and Advisory Services.

What is the duration of DLH's (DLHC) OASIS+ contract?

The contract has a base period of five years with one option period of five additional years, potentially lasting up to 10 years total.

Which federal agencies can use DLH's (DLHC) OASIS+ contract?

All federal agencies can use the contract, with major users including the Defense Health Agency, Centers for Disease Control and Prevention, and the Department of Defense.

Is there a ceiling limit on the DLHC OASIS+ contract awards?

No, the OASIS+ contract has no ceiling or cap on awards.

When did DLH (DLHC) submit their OASIS+ contract proposal?

DLH submitted their OASIS+ contract proposals in June 2023.