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Leidos awarded $987 million contract to support F-16 Foreign Military Sales sustainment

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Leidos (NYSE: LDOS) has secured a significant $987 million contract from the Air Force Life Cycle Management Center to provide engineering and sustainment services for Foreign Military Sales customers of the F-16 Fighting Falcon. The single-award contract spans a 10-year period and focuses on post-production support for the F-16 weapon system.

The company will implement its Web Based Management System to provide real-time visibility of repair asset tracking and enhance the repair and return process. The system leverages AI and predictive analytics to increase efficiency, visibility, and accountability. This support is important for the global F-16 fleet, which includes approximately 2,200 active aircraft across more than 25 nations.

Leidos (NYSE: LDOS) ha ottenuto un significativo contratto da 987 milioni di dollari dal Centro di gestione del ciclo di vita dell'Air Force per fornire servizi di ingegneria e sostenimento ai clienti delle vendite militari estere del F-16 Fighting Falcon. Il contratto, assegnato tramite gara unica, ha una durata di 10 anni e si concentra sul supporto post-produzione per il sistema d'arma F-16.

L'azienda attuerà il suo Sistema di Gestione Basato sul Web per fornire visibilità in tempo reale del monitoraggio degli asset di riparazione e migliorare il processo di riparazione e restituzione. Il sistema utilizza AI e analisi predittive per aumentare l'efficienza, la visibilità e la responsabilità. Questo supporto è importante per la flotta globale di F-16, che include circa 2.200 aerei attivi in più di 25 nazioni.

Leidos (NYSE: LDOS) ha asegurado un contrato significativo de 987 millones de dólares del Centro de Gestión del Ciclo de Vida de la Fuerza Aérea para proporcionar servicios de ingeniería y sostenimiento a los clientes de ventas militares extranjeras del F-16 Fighting Falcon. El contrato de adjudicación única se extiende por un período de 10 años y se centra en el apoyo postproducción para el sistema de armas F-16.

La empresa implementará su Sistema de Gestión Basado en la Web para proporcionar visibilidad en tiempo real del seguimiento de activos de reparación y mejorar el proceso de reparación y retorno. El sistema aprovecha la IA y la analítica predictiva para aumentar la eficiencia, la visibilidad y la responsabilidad. Este apoyo es importante para la flota global de F-16, que incluye aproximadamente 2,200 aeronaves activas en más de 25 naciones.

Leidos (NYSE: LDOS)는 공군 생명주기 관리 센터로부터 9억 8천7백만 달러 규모의 계약을 체결하였으며, 이는 F-16 전투기 외국 군사 판매 고객을 위한 엔지니어링 및 지속 가능 지원 서비스를 제공하는 것입니다. 단일 수여 계약은 10년 동안 진행되며, F-16 무기 체계의 생산 후 지원에 중점을 두고 있습니다.

회사는 웹 기반 관리 시스템을 구현하여 수리 자산 추적의 실시간 가시성을 제공하고 수리 및 반환 프로세스를 개선할 것입니다. 이 시스템은 AI와 예측 분석을 활용하여 효율성, 가시성 및 책임성을 높입니다. 이 지원은 25개국 이상에 걸쳐 약 2,200대의 활성 항공기를 포함하는 글로벌 F-16 함대에 중요합니다.

Leidos (NYSE: LDOS) a obtenu un contrat significatif de 987 millions de dollars du Centre de gestion du cycle de vie de l'Air Force pour fournir des services d'ingénierie et de soutien aux clients des ventes militaires étrangères du F-16 Fighting Falcon. Le contrat, attribué par adjudication unique, s'étend sur une période de 10 ans et se concentre sur le soutien après production pour le système d'armement F-16.

L'entreprise mettra en œuvre son Système de Gestion Basé sur le Web pour fournir une visibilité en temps réel du suivi des actifs de réparation et améliorer le processus de réparation et de retour. Le système utilise l'IA et l'analyse prédictive pour améliorer l'efficacité, la visibilité et la responsabilité. Ce soutien est important pour la flotte mondiale de F-16, qui comprend environ 2 200 aéronefs actifs dans plus de 25 pays.

Leidos (NYSE: LDOS) hat einen bedeutenden Vertrag über 987 Millionen Dollar vom Luftwaffen-Zentrum für Lebenszyklusmanagement erhalten, um Ingenieur- und Unterstützungsdienste für ausländische Militärverkäufe des F-16 Fighting Falcon bereitzustellen. Der Vertragsabschluss erfolgt über einen 10-Jahres-Zeitraum und konzentriert sich auf die Unterstützung nach der Produktion für das F-16 Waffensystem.

Das Unternehmen wird sein webbasierendes Managementsystem implementieren, um eine Echtzeitsichtbarkeit der Nachverfolgung von Reparaturressourcen zu bieten und den Reparatur- und Rückgabeprozess zu verbessern. Das System nutzt KI und prädiktive Analytik, um Effizienz, Sichtbarkeit und Verantwortung zu steigern. Diese Unterstützung ist wichtig für die globale F-16-Flotte, die ungefähr 2.200 aktive Flugzeuge in mehr als 25 Nationen umfasst.

Positive
  • Secured substantial $987 million contract with 10-year duration
  • Contract provides stable, long-term revenue stream through F-16 sustainment services
  • Serves large global market with 2,200 active F-16 aircraft across 25+ nations
  • Implementation of proprietary AI and predictive analytics technology
Negative
  • None.

Insights

This $987 million F-16 sustainment contract represents a major win for Leidos, strengthening their position in the lucrative defense maintenance sector. The 10-year performance period provides stable, long-term revenue visibility. What's particularly noteworthy is Leidos' integration of AI and predictive analytics for maintenance optimization - this technological edge could yield higher profit margins compared to traditional sustainment contracts.

The global F-16 fleet of 2,200 active aircraft across 25+ nations presents significant upside potential. As these aircraft age, maintenance requirements typically increase, potentially leading to additional contract opportunities. The Web Based Management System for real-time repair tracking addresses a critical pain point in military aviation maintenance, where parts availability and repair turnaround times directly impact operational readiness.

Comparing this to Leidos' $15.4 billion annual revenue, this contract represents approximately 0.64% of yearly revenue per annum, making it a meaningful but not transformative addition to their portfolio. The emphasis on diminishing manufacturing sources mitigation is particularly valuable as F-16 parts become scarcer, potentially commanding premium pricing.

The implementation of AI and predictive analytics in military aviation maintenance marks a significant technological advancement. Traditional maintenance tracking systems often struggle with data fragmentation and delayed reporting. Leidos' Web Based Management System, by enabling real-time visibility, could reduce aircraft downtime and maintenance costs - critical metrics in defense contracts.

The system's focus on diminishing manufacturing sources is particularly innovative. As F-16 components become obsolete, predictive analytics can forecast parts failures before they occur, enabling proactive sourcing and potentially preventing costly aircraft groundings. This technological approach could give Leidos a competitive advantage in future military sustainment contracts.

RESTON, Va., Dec. 19, 2024 /PRNewswire/ -- Leidos (NYSE: LDOS) today announced a new contract to provide critical engineering and sustainment services for Foreign Military Sales (FMS) customers of the U.S. Air Force's F-16 Fighting Falcon. The contract was awarded by the Air Force Life Cycle Management Center, supporting the F-16 System Program Office. The single award, indefinite delivery, indefinite quantity contract has a maximum value of $987 million and 10-year period of performance.

"We leveraged our corporate investments in AI and predictive analytics to provide our customer with a data-informed platform to increase efficiency, visibility and accountability," said Roy Stevens, Leidos National Security Sector president. "This win underlines Leidos' commitment to supporting the U.S. Air Force and our allies ensuring high resilience and interoperability."

Under the contract, Leidos will provide post-production support through critical engineering and sustainment services necessary for the continued operation and improvement of the F-16 weapon system. Leidos' Web Based Management System will enable the customer to maintain real-time visibility of repair asset tracking status for the repair and return lifecycle. Leidos' technology is designed to enhance the customer's repair and return process, improve engineering and technical support resolution, and help reduce diminishing manufacturing sources and material shortages.

The F-16 has been procured by over 25 nations around the world, supporting a global fleet size of approximately 2,200 active aircraft.

The appearance of U.S. Department of Defense (DoD) visual information does not imply or constitute DoD endorsement.

About Leidos

Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with 48,000 global employees, 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 and duration of Leidos's (LDOS) new F-16 sustainment contract?

Leidos (LDOS) secured a $987 million contract with a 10-year period of performance for F-16 sustainment services.

How many countries and aircraft will Leidos (LDOS) support through the F-16 contract?

Leidos will support over 25 nations and approximately 2,200 active F-16 aircraft through this Foreign Military Sales contract.

What technology will Leidos (LDOS) use in the F-16 sustainment program?

Leidos will utilize its Web Based Management System, incorporating AI and predictive analytics for real-time repair asset tracking and improved efficiency.

What specific services will Leidos (LDOS) provide under the F-16 contract?

Leidos will provide post-production support, critical engineering and sustainment services, repair asset tracking, and solutions for diminishing manufacturing sources and material shortages.

Leidos Holdings, Inc.

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