DLH Wins Renewal of Monitoring & Evaluation Support to the Office of Head Start

Rhea-AI Summary

DLH Holdings Corp. (NASDAQ: DLHC) has been awarded a significant contract renewal with the Administration for Children and Families' Office of Head Start, valued at $150 million over eight months and four one-year options. This renewal enhances monitoring support services using advanced technology and data analytics. DLH emphasizes its commitment to quality improvement, particularly in education and family support during COVID-19 challenges. The company will evaluate over 2,000 grantees across the U.S., continuing its long-standing partnership with ACF.

Positive

• Contract renewal valued at $150 million enhances monitoring support services.
• Implements advanced technology and data analytics for improved project management.

Negative

• Future revenue estimates are uncertain due to risks from COVID-19 and economic impacts.

ATLANTA, Aug. 26, 2020 (GLOBE NEWSWIRE) -- DLH Holdings Corp. (NASDAQ: DLHC) (“DLH” or the “Company”), a leading provider of innovative healthcare research, services and solutions to federal agencies, today announced that it has been awarded a contract to continue providing national monitoring support services to the Administration for Children and Families’ (ACF) Office of Head Start (OHS). The award covers project management, compliance and performance monitoring reviews, logistic support, data collection, utilization and analysis, technology systems and subject matter expertise in the areas of program management and quality improvement.

The contract renewal leverages significant business process and technology changes to the reviewing and monitoring methodology accomplished under the previous contract. These included Development, Modernization, and Enhancement (DME) services to migrate from the legacy government system to a mobile-enabled environment with new tools for data capture and visualization, content management, and report generation. Through this new contract DLH brings enhanced fraud, waste, and abuse detection services, bolstered by its in-house FedRAMP Ready secure data analytics platform-as-a-service (PaaS) Infinibyte Cloud solution, which meets and exceeds federal agency FISMA requirements.

The contract includes a base period of eight months, with four one-year options, valued at $150 million including the option periods, and it continues DLH’s longstanding relationship with ACF. Under the contract DLH’s extensive network of early reviewers and subject matter experts will evaluate over 2,000 grantees providing services to children throughout the U.S.

“DLH is honored to continue our support of the ACF’s Office of Head Start in its missions to ensure vulnerable young children throughout the United States are prepared to succeed in school, and families receive the support they need to work to enhance school readiness,” said Zach Parker, President & CEO of DLH.

“We are extremely proud of our long-standing relationship with OHS and look forward to building upon our existing track record of performance excellence,” added Helene Fisher, President of DLH's subsidiary, Danya International. “As we navigate the challenges posed to at-risk children and families served by OHS and ACF by the COVID-19 pandemic in the immediate and long-term, DLH remains committed to implementing innovative solutions in the service of quality improvement, educational and childhood development, physical and mental health, family engagement, and fiscal accountability.”

About DLH
DLH (NASDAQ: DLHC) serves federal government clients throughout the United States and abroad delivering technology enabled solutions in key health and human services programs. The Company's core competencies include secure data analytics, clinical trials and laboratory services, case management, performance evaluation, system modernization, operational logistics and readiness, and strategic digital communications. DLH has approximately 2,000 employees serving numerous government agencies. For more information, visit the corporate website at 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 an acquisition; the challenges of managing larger and more widespread operations resulting from the acquisition; contract awards in connection with re-competes for present business and/or competition for new business; compliance with new bank financial and other covenants; changes in client budgetary priorities; government contract procurement (such as bid protest, 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 future acquisitions; 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, 2019, 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 is the value of the new contract awarded to DLH Holdings Corp. in 2020?

The contract is valued at $150 million, covering a base period of eight months and four one-year options.

What services will DLH provide under the new contract with ACF?

DLH will provide project management, compliance monitoring, data collection, and enhanced fraud detection services.

How many grantees will DLH evaluate under the new contract?

DLH will evaluate over 2,000 grantees providing services to children across the U.S.

What technology solutions will DLH use in the new contract?

DLH will use its FedRAMP Ready secure data analytics platform-as-a-service, Infinibyte Cloud.

How does the COVID-19 pandemic affect DLH's operations?

The pandemic poses challenges that may impact demand for services and overall operations.