DISA Awards Leidos $11.5 Billion Defense Enclave Services Contract

Rhea-AI Summary

Leidos has secured an $11.5 billion contract from the Defense Information Systems Agency for the Defense Enclave Services (DES) initiative. The contract spans four years, with options for three additional two-year periods. Leidos aims to enhance mission capabilities and user experience through a unified network architecture. CEO Roger Krone praised the award, emphasizing the company’s commitment to delivering critical support to military efforts. The firm reported revenues of approximately $13.7 billion for the fiscal year ending December 31, 2021.

Positive

• Awarded $11.5 billion contract for Defense Enclave Services, enhancing revenue potential.
• Strengthens Leidos' position in defense contracting and technology services.

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• None.

RESTON, Va., Feb. 28, 2022 /PRNewswire/ -- Leidos (NYSE: LDOS), a FORTUNE® 500 science and technology leader, has been awarded the Defense Enclave Services (DES) contract by the Defense Information Systems Agency. The single-award, indefinite delivery, indefinite quantity contract has a total estimated value of $11.5 billion and a four-year base period of performance followed by three two-year option periods.

"We are honored that DISA has entrusted our team to establish the modern infrastructure foundation that will deliver critical combat support capabilities to our warfighters," said Roger Krone, Leidos Chairman and CEO. "Leidos is committed to helping DISA and the Defense Agencies and Field Activities (DAFA) further their vision, leveraging our decades of technological expertise to bolster their critical mission."

"The Defense Enclave Services program demands unique expertise and advanced technology solutions," said Gerry Fasano, Leidos Defense Group President. "Leidos brings both at unparalleled scale, with a focus on constant innovation. We look forward to delivering an improved user experience and enhanced mission capabilities."

Through digital modernization and transformation, the Defense Enclave Service (DES) contract will unify the DAFAs on a common network architecture to provide mission services focused on enhanced user experience, improved security, and network reliability.

Headquartered in Fort Meade, Maryland, the Defense Information Systems Agency provides, operates, and assures command and control and information-sharing capabilities and a globally accessible enterprise information infrastructure in direct support to joint warfighters, national level leaders and other mission and coalition partners across the full spectrum of military operations.

About Leidos
Leidos is a Fortune 500® technology, engineering, and science solutions and services leader working to solve the world's toughest challenges in the defense, intelligence, civil and health markets. Leidos' 43,000 employees support vital missions for government and commercial customers. Headquartered in Reston, Va., Leidos reported annual revenues of approximately $13.7 billion for the fiscal year ended December 31, 2021. For more information, visit www.leidos.com.

Statements in this announcement, other than historical data and information, constitute forward-looking statements that involve risks and uncertainties. A number of factors could cause our actual results, performance, achievements, or industry results to be very different from the results, performance, or achievements expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in the company's Annual Report on Form 10-K for the period ended December 31, 2021, and other such filings that Leidos makes with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.

Contact:
Melissa Dueñas
(571) 526-6850
Melissa.L.Duenas@leidos.com 

Thomas Doheny
(571) 474-4735
Dohenyt@leidos.com 

Jalen Drummond
(571) 992-5046
Jalen.Drummond@leidos.com

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SOURCE Leidos Holdings, Inc.

FAQ

What is the value of the contract awarded to Leidos by DISA?

The contract is valued at $11.5 billion.

How long is the Defense Enclave Services contract with Leidos?

The contract has a four-year base period followed by three two-year option periods.

What is Leidos' revenue for the fiscal year 2021?

Leidos reported revenues of approximately $13.7 billion for the fiscal year ended December 31, 2021.

What are the goals of the Defense Enclave Services program?

The program aims to unify Defense Agencies on a common network architecture, enhancing user experience and network reliability.

Who commented on the importance of the DES contract for Leidos?

CEO Roger Krone and Defense Group President Gerry Fasano both commented on the contract's significance.