DLH to Expand Digital Transformation Services at the National Heart, Lung, and Blood Institute

Rhea-AI Summary

DLH Holdings Corp. (DLHC) has been awarded a $85 million contract to provide agile development, data sciences, and health IT services for the National Heart, Lung, and Blood Institute (NHLBI) of the National Institutes of Health. The contract, with a period of performance of five years, aims to modernize and optimize NHLBI's Information Technology and Applications Center's software and application portfolio, embracing new technologies and methods while increasing alignment with mission needs.

Positive

• DLH Holdings Corp. has been awarded a significant $85 million contract, indicating strong business growth and potential for revenue generation over the next five years.
• The contract with NHLBI emphasizes the implementation and adoption of low-code / no-code platforms and Zero-Trust Architecture alignment for the enterprise, showcasing DLH's commitment to modernization and innovation in IT services.
• The contract is expected to contribute to NHLBI's digital transformation and modernization strategy, positioning DLH as a key partner in supporting NHLBI's mission to promote the prevention and treatment of heart, lung, blood, and sleep disorders.

Negative

• None.

ATLANTA, Aug. 02, 2023 (GLOBE NEWSWIRE) -- DLH Holdings Corp. (NASDAQ: DLHC) (“DLH” or the “Company”), a leading provider of digital transformation, systems engineering and integration, and science research and development solutions to federal agencies, today announced that it has been awarded a contract to provide agile development, data sciences, and health IT services for the National Institutes of Health’s (“NIH”) National Heart, Lung, and Blood Institute (“NHLBI”). NHLBI is an institute dedicated to providing global leadership for a research, training, and education program to promote the prevention and treatment of heart, lung, blood, and sleep disorders.

This new contract is a Blanket Purchase Agreement (“BPA”) issued against the General Services Administration Multiple Award Schedule that includes a period of performance of five years. Including DLH, there are five awardees on the contract, and the government estimates that the aggregate ceiling for this BPA will total $85 million. Specific values will be allocated to contractors as task orders are competed and awarded. Through this award, the Company will modernize and optimize the NHLBI Information Technology and Applications Center’s (“ITAC”) software and application portfolio, helping the institute embrace new technologies and methods while increasing alignment with mission needs. Services to be provided include systems and software development, integration, testing, and operations; big data management and analytics; bioinformatics and data science support; cybersecurity; and strategic advisory services. The work anticipated under this contract is key to NHLBI’s digital transformation and modernization strategy, emphasizing the implementation and adoption of low-code / no-code platforms as well as Zero-Trust Architecture alignment for the enterprise.

"We are proud that NHLBI continues to trust DLH for their complex IT and scientific support services, and are thrilled about this opportunity to expand our support of the Institute’s mission in partnership with ITAC,” said Diane Yarnell, President of DLH’s Health IT Business Unit. “DLH leveraged the capabilities and expertise of multiple operating units in winning this award, demonstrating the value creation our unified enterprise is capable of.”

“This award provides yet another contract vehicle through which DLH will utilize its digital transformation, systems engineering, and cybersecurity expertise in support of a customer’s critical public health mission,” said Zach Parker, DLH President and CEO. “With an intimate understanding of NHLBI’s scientific and information technology needs, and a suite of advanced solutions and technological capabilities, DLH is perfectly positioned to deliver the support that our customer requires to retain its position as a global leader in heart, lung, and blood research, training, and education.”

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 contract has DLH Holdings Corp. (DLHC) been awarded recently?

DLH Holdings Corp. (DLHC) has been awarded a $85 million contract to provide agile development, data sciences, and health IT services for the National Heart, Lung, and Blood Institute (NHLBI) of the National Institutes of Health.

What is the period of performance for the recently awarded contract?

The period of performance for the recently awarded contract is five years.

What specific services will DLH Holdings Corp. (DLHC) provide under the contract with NHLBI?

DLH Holdings Corp. (DLHC) will provide systems and software development, integration, testing, and operations; big data management and analytics; bioinformatics and data science support; cybersecurity; and strategic advisory services under the contract with NHLBI.

How many awardees are there on the contract with NHLBI?

Including DLH, there are five awardees on the contract with NHLBI.

What is the total estimated aggregate ceiling for the Blanket Purchase Agreement (BPA) with NHLBI?

The government estimates that the aggregate ceiling for this BPA will total $85 million.

What is the emphasis of the contract between DLH Holdings Corp. (DLHC) and NHLBI?

The contract emphasizes the implementation and adoption of low-code / no-code platforms and Zero-Trust Architecture alignment for the enterprise.

How will the contract contribute to NHLBI's strategy?

The contract is expected to contribute to NHLBI's digital transformation and modernization strategy, positioning DLH as a key partner in supporting NHLBI's mission.

What are the key areas of focus for the services to be provided by DLH Holdings Corp. (DLHC) under the contract with NHLBI?

The key areas of focus for the services to be provided include modernizing and optimizing NHLBI's Information Technology and Applications Center's software and application portfolio, embracing new technologies and methods, and increasing alignment with mission needs.