DLH to Deliver Leading-Edge Enterprise and Specialized Information Technology Services to the National Cancer Institute

Rhea-AI Summary

DLH Holdings Corp. (NASDAQ: DLHC) has announced that its subsidiary, Grove Resource Solutions LLC (GRSi), secured a blanket purchase agreement (BPA) to provide IT services to the National Cancer Institute (NCI). The BPA spans five years with an estimated $1.7 billion ceiling. GRSi has previously supported NCI's CBIIT since 2018. Under this agreement, DLH will serve as a prime vendor, offering services such as operations and maintenance, information systems security, and cloud platform management. DLH aims to enhance NCI's research efforts while addressing complex health challenges.

Positive

• Awarded a five-year BPA with NCI, potentially worth $1.7 billion.
• GRSi has a strong track record with CBIIT since 2018.
• Positioned as a prime vendor for comprehensive IT services.

Negative

• None.

ATLANTA, Feb. 28, 2023 (GLOBE NEWSWIRE) -- DLH Holdings Corp. (NASDAQ: DLHC) (“DLH” or the “Company”), a leading provider of science research and development, systems engineering and integration, and digital transformation solutions to federal agencies, today announced that its subsidiary Grove Resource Solutions LLC (“GRSi”) has been awarded a multiple-award blanket purchase agreement (“BPA”) to provide leading-edge enterprise and specialized information technology (“IT”) services to the National Cancer Institute’s (“NCI”) Center for Biomedical Informatics and Information Technology (“CBIIT”). NCI is an institute of the National Institutes of Health (“NIH”) dedicated to leading, conducting, and supporting cancer research across the nation with the aim of advancing scientific knowledge and prolonging human lives; CBIIT provides critical IT services in support of that mission.

The multiple-award contract has a five-year period of performance, and the government estimates that the aggregate ceiling for this BPA will total $1.7 billion. Specific values will be allocated to contractors as call orders are competed and awarded. Including DLH, eight awardees have been named to this contract. GRSi has supported CBIIT through the organization’s enterprise Desktop Management and User Support program since 2018.

“We are thrilled to expand our partnership with CBIIT under this contract vehicle and strive to continue delivering the best-in-class services and solutions the NCI research community has come to expect of GRSi,” said Diane Yarnell, President of GRSi’s Health IT Business Unit.

This BPA, managed by CBIIT, provides a streamlined mechanism for the entire NCI community to access comprehensive and innovative IT services. Through GRSi, DLH will act as a prime vendor on this contract and provide NCI with the specialized professional IT support required to accomplish their complex, mission-critical goals. Under call orders to be awarded under the BPA responsibilities may include operations and maintenance, information systems security, service desk, engineering, cloud platform management and support, enterprise Software as a Service (“SaaS”) platform management, data management, and more.

“We are proud to build upon our existing relationship with NCI as the institute works tirelessly to improve research, training, and information dissemination with respect to the causes and treatment of cancer,” said Zach Parker, DLH President & CEO. “We will utilize our high-end IT and technical capabilities and our industry-leading workforce to support this vital public health mission through digital transformation.”

About DLH

DLH (NASDAQ:DLHC) delivers improved health and national security readiness solutions for federal programs through science research and development, systems engineering and integration, and digital transformation. The Company’s experts in public health, performance evaluation, and health operations solve the complex problems faced by civilian and military customers alike, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 3,200 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 innovation 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. 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 outbreak of the novel coronavirus (“COVID-19”), including the measures to reduce its spread, and its impact on the economy and demand for our services, are uncertain, cannot be predicted, and may precipitate or exacerbate other risks and uncertainties; the risk that we will not realize the anticipated benefits of the GRSi acquisition; (including anticipated future financial operating performance and results); diversion of management’s attention from normal daily operations of the business and the challenges of managing larger and more widespread operations resulting from the acquisition; the inability to retain GRSi employees and customers; contract awards in connection with re-competes for present business and/or competition for new business; the risks and uncertainties associated with client interest in and purchases of new services; compliance with new 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 ability to successfully integrate the operations of GRSi and any future acquisitions; 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, 2022, 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:

MEDIA

Email: dlh.communications@dlhcorp.com

INVESTOR RELATIONS

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

FAQ

What is the value of the BPA awarded to DLHC's subsidiary GRSi?

The BPA has an estimated aggregate ceiling of $1.7 billion.

What services will GRSi provide under the BPA with NCI?

GRSi will provide IT services including operations and maintenance, information systems security, and cloud platform management.

How long is the BPA contract for DLH Holdings Corp. with the National Cancer Institute?

The BPA contract runs for five years.

Since when has GRSi supported the National Cancer Institute?

GRSi has supported NCI's CBIIT since 2018.

What is DLH Holdings Corp.'s stock symbol?

DLH Holdings Corp.'s stock symbol is DLHC.