Leidos awarded $158 million U.S. Air Force command and control emergency management contract

Rhea-AI Summary

Leidos (LDOS) secures $158 million contract to enhance Air Force's Command and Control Incident Management Emergency Response Application (C2IMERA) with a decade-long collaboration, aiming to expand user base and capabilities.

Insights

Defense Contracting Analyst

The contract awarded to Leidos for the development and expansion of the C2IMERA system represents a significant commitment by the U.S. Air Force to bolster its command and control capabilities. The valuation of $158 million, contingent upon the full exercise of the contract options, underscores the strategic importance of this system in military operations. The system's integration across all Air Force installations indicates an extensive reach, which could potentially streamline emergency response and enhance operational readiness.

From a defense contracting perspective, the longevity and expansion of this contract with Leidos demonstrate the company's entrenched relationship with the military and its ability to meet specialized defense needs. The contract's structure, with a half-year base period and multiple extension options, provides Leidos with a stable revenue stream while also allowing the Air Force flexibility in scaling the project based on evolving requirements and technological advancements.

Cybersecurity Expert

C2IMERA's emphasis on secure and resilient information capabilities is crucial in an era where cyber warfare and digital threats are prevalent. The integration of this system into the Air Force's operations enhances the military's ability to maintain situational awareness and respond to incidents with agility. The cybersecurity implications of deploying C2IMERA across a wider network of users and locations are significant. It will require robust security protocols to safeguard sensitive military data against potential cyber threats, particularly as the user base expands to include local governments and host nations.

Leidos's role in developing government-owned software applications like C2IMERA also highlights the trend towards public-private partnerships in the defense sector, where private companies are entrusted with the development of critical national security tools, underlining the importance of cybersecurity expertise in these collaborations.

Market Analyst

The announcement of Leidos's contract with the Air Force is likely to be viewed positively by investors and could influence Leidos's stock market performance. Contracts of this scale contribute to the company's backlog and are indicative of its competitive positioning within the defense sector. Investors typically look for such contracts as signals of future revenue and earnings stability. The contract's potential value of $158 million, if all options are exercised, represents a substantial addition to Leidos's revenue stream.

Moreover, the company's ability to secure repeat business with the Air Force could be seen as a testament to its performance and reliability, potentially making it an attractive prospect for shareholders. The scaling of C2IMERA across additional Air Force installations may also pave the way for future contracts and expansions, further solidifying Leidos's market presence.

RESTON, Va., March 7, 2024 /PRNewswire/ -- Leidos (NYSE: LDOS), a Fortune 500® innovation leader, was recently awarded a follow-on prime contract to develop and expand the Air Force's Command and Control Incident Management Emergency Response Application (C2IMERA). The single-award contract was awarded by Kessel Run, a division within the Air Force Life Cycle Management Center. The contract has a six-month base period of performance with four one-year options and two six-month options. It has a value of $158 million if all options are exercised.

"C2IMERA provides Air Force personnel and installations with secure and resilient information capabilities that are integrated, interoperable, and adaptable," said Mike Rickels, Leidos senior vice president, Decision Advantage Solutions. "Our collaboration with the Air Force in maturing C2IMERA's command and control capability now spans a decade. We look forward to this next step in scaling and evolving the advanced C2IMERA tool to enhance the Air Force's operational advantage."

Under the contract, Leidos will continue to develop C2IMERA and work to expand the system to include all Air Force installations, associated forward operating locations, and contingency locations for command and control and emergency management requirements. This scaling is intended to incorporate an expanded user base, including emergency response services, local governments, and host nations.

C2IMERA is a Leidos-developed, government-owned software application system that provides an integrated composite picture of wing and unit resources for planning, force employment, emergency management, C2 monitoring, and reporting. The Air Force and other stakeholders use C2IMERA for decision advantage in day-to-day operations and across the conflict continuum to prevent, protect against, mitigate, respond to, and recover installations from physical hazards or threats.

Leidos developed C2IMERA at the company's software factories. In 2018, it became the first externally developed program to be integrated into Kessel Run. Leidos has been responsible for C2IMERA's development along with its predecessor product, Unit Command and Control (UC2), since 2014.

Leidos currently supports approximately 25,000 C2IMERA users across 90 locations worldwide.

Learn more about C2IMERA's capabilities and Leidos' development here.

About Leidos

Leidos is a Fortune 500® innovation company rapidly addressing the world's most vexing challenges in national security and health. The company's global workforce of 47,000 collaborates to create smarter technology solutions for customers in heavily regulated industries. Headquartered in Reston, Virginia, Leidos reported annual revenues of approximately $15.4 billion for the fiscal year ended December 29, 2023. For more information, visit www.leidos.com.

Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended December 29, 2023, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

Media Contacts:

Melissa Dueñas
(571) 526-6850
duenasml@leidos.com

Alyssa Pettus                                                                                    
(571) 526-6743
alyssa.t.pettus@leidos.com

Brandon Ver Velde
(571) 526-6257
Brandon.p.vervelde@leidos.com 

View original content to download multimedia:https://www.prnewswire.com/news-releases/leidos-awarded-158-million-us-air-force-command-and-control-emergency-management-contract-302083308.html

SOURCE Leidos Holdings, Inc.

FAQ

What contract did Leidos recently secure related to the Air Force?

Leidos secured a follow-on prime contract to develop and expand the Air Force's Command and Control Incident Management Emergency Response Application (C2IMERA).

What is the value of the contract awarded to Leidos?

The contract has a value of $158 million if all options are exercised.

What is the purpose of C2IMERA developed by Leidos?

C2IMERA provides Air Force personnel and installations with secure and resilient information capabilities that are integrated, interoperable, and adaptable.

How many users does Leidos currently support with C2IMERA?

Leidos currently supports approximately 25,000 C2IMERA users across 90 locations worldwide.