Leidos awarded $93 million contract to support Navy and Marine Corps weapons systems

Rhea-AI Summary

Leidos (NYSE:LDOS) has secured a new $93 million Technical Assistance for Repairables Processing (TARP) contract from the Naval Supply Systems Command Fleet Logistics Center. The contract includes a one-year base period with four one-year options and a six-month option. Under this contract, Leidos will develop a business intelligence dashboard and provide global field representatives to train U.S. Navy personnel on Reverse Supply Chain operations, including proper packaging of military assets and use of the electronic Retrograde Management System. This marks Leidos' seventh TARP program contract since 2000.

Positive

• Secured new $93 million contract with potential for multi-year extension
• Seventh consecutive TARP contract win demonstrates strong customer relationship
• Contract includes expansion into new business intelligence dashboard development

Negative

• None.

Insights

Defense Industry Analyst

This $93 million TARP contract renewal demonstrates Leidos' strong competitive position in military logistics and supply chain management. The company's track record of six previous successful TARP contracts since 2000 showcases their deep expertise and established relationship with NAVSUP. The planned business intelligence dashboard development indicates strategic investment in digital transformation.

The contract structure, with a one-year base and multiple extension options, provides steady revenue visibility while the focus on depot-level repairables (DLRs) management addresses a critical military need. DLRs typically represent high-value components, making efficient processing essential for cost control. Leidos' position as an incumbent contractor with proven innovations in automated reporting and mobile applications strengthens their competitive moat in this sector.

RESTON, Va., Oct. 30, 2024 /PRNewswire/ -- Leidos (NYSE:LDOS) announced today a new contract to provide critical supply support for weapons systems that keep the U.S. Navy and Marine Corps forces mission-ready. The Technical Assistance for Repairables Processing (TARP) contract was awarded by the Naval Supply Systems Command (NAVSUP) Fleet Logistics Center, supporting NAVSUP's Weapon Systems Support (WSS). The contract has a base period of performance of one year with four one-year options and one six-month option.

"Leidos' solutions in advanced traceability and control support our Navy and Marine forces in moving, controlling, and tracking depot-level repairables worldwide – ultimately helping to reduce repair pipeline time and the cost of future investment," said Jason McCarthy, Leidos senior vice president, Engineering, Integration & Operations. "We are proud to continue to deliver mission-enabling technology and data-driven logistics to our long-time customer."

New under this contract, Leidos plans to develop a business intelligence dashboard with live data and reporting to put a powerful decision support system at the fingertips of the NAVSUP WSS customer, including in offline environments.

Under the TARP program, global field representatives train and assist the U.S. Navy field and fleet on all aspects of the Reverse Supply Chain (RSC). The training covers the proper packaging of expensive military assets as well as use of the electronic Retrograde Management System (eRMS), an IT system that provides visibility and accountability for repairables moved through RSC transportation channels.

This is the seventh TARP program contract awarded to Leidos. Since 2000, the Leidos team has consistently delivered innovations, including automated reporting and multi-platform mobile applications to capture project data.

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 48,000 employees support vital missions for government and commercial customers. 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.

Contact:	Alyssa Pettus
	(571) 526-6743
	alyssa.t.pettus@leidos.com
	Greg Hellman
	(571) 526-7592
	Greg.hellman@leidos.com

 

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SOURCE Leidos Holdings, Inc.

FAQ

What is the value of Leidos (LDOS) new Navy contract in 2024?

Leidos (LDOS) was awarded a $93 million contract for the Technical Assistance for Repairables Processing (TARP) program.

How long is the duration of Leidos (LDOS) 2024 TARP contract?

The contract has a one-year base period with four one-year options and one six-month option.

What new features will Leidos (LDOS) develop under the 2024 TARP contract?

Leidos will develop a business intelligence dashboard with live data and reporting capabilities, including offline functionality.

How many TARP contracts has Leidos (LDOS) won to date?

This is the seventh TARP program contract awarded to Leidos since 2000.