Leidos awarded contract to support ARPA-H

Rhea-AI Summary

Leidos (NYSE:LDOS) has been awarded a prime contract by ARPA-H, a part of the NIH, with a one-year base period of performance and two one-year options. The contract aims to build infrastructure and capabilities for biomedical breakthroughs and health discoveries, leveraging Leidos' expertise in delivering health solutions. The company will provide ARPA-H with a full range of IT support, design, development, and implementation.

Insights

Market Research Analyst

The contract awarded to Leidos by ARPA-H represents a strategic expansion of its portfolio in the health sector, potentially bolstering the company's long-term revenue streams. Given the government's increasing focus on healthcare innovation, such partnerships are likely to become more common. The contract's structure, with a base period and extension options, provides a predictable revenue forecast for the near term, which is typically well-received by investors. However, the actual financial impact will depend on the contract's value relative to Leidos's overall revenue.

For stakeholders, the partnership with ARPA-H could signal Leidos's strengthened credibility in the health and IT sectors. It could lead to further contracts and collaborations, enhancing the company's market position. On the other hand, the specialized nature of the contract means that Leidos must maintain high levels of expertise and innovation to deliver on its promises, which could require significant investment in talent and technology.

Healthcare Industry Analyst

Leidos's collaboration with ARPA-H is indicative of the critical role that private sector companies play in advancing public health objectives. The focus on building infrastructure and capabilities for biomedical breakthroughs aligns with the broader industry trend of leveraging technology to improve health outcomes. The contract's emphasis on IT support, design, development and implementation underscores the increasing intersection of technology and healthcare. This trend is likely to drive demand for advanced health solutions, benefiting companies like Leidos that have established expertise in this area.

For industry peers, this development highlights the competitive landscape of government contracts in health-related research and technology. Companies that can effectively integrate IT solutions with health services are likely to gain a competitive edge. The success of this contract could also set a precedent for the efficacy of public-private partnerships in addressing complex health challenges.

Financial Analyst

From a financial perspective, the contract with ARPA-H could impact Leidos's earnings per share (EPS), depending on the size of the contract and the efficiency of contract execution. Investors will be monitoring the company's quarterly financial reports to assess the contribution of this contract to the overall financial health of the company. The announcement of such contracts often leads to positive market reactions, as they can be seen as a testament to a company's ability to secure lucrative government deals.

It is also important to consider the opportunity cost associated with this contract. While it may bring in steady revenue, Leidos must allocate resources that could have been used for other potentially profitable ventures. The company's ability to manage its project portfolio effectively will be crucial in maximizing shareholder value. Additionally, the performance on this contract could influence investor perceptions of Leidos's capability to handle complex health sector projects, potentially affecting its stock price.

RESTON, Va., Jan. 29, 2024 /PRNewswire/ -- Leidos (NYSE:LDOS), a Fortune 500® innovation company, was recently awarded a prime contract by the Advanced Research Projects Agency for Health (ARPA-H). The hybrid firm fixed price/time and materials contract was awarded by the U.S. Department of Health and Human Services (HHS) and has a one-year base period of performance and two one-year options.

"We are thrilled to work with ARPA-H building the infrastructure and capabilities necessary to drive biomedical breakthroughs and groundbreaking health discoveries," said Liz Porter, Leidos health and civil sector president. "Leveraging our expertise in delivering health solutions to improve health outcomes and efficiencies will empower ARPA-H as the agency grows and evolves. We look forward to helping them tackle the most pressing health challenges facing society today."

ARPA-H supports the development of high-impact transformative biomedical and health research as an independent entity of the National Institutes of Health (NIH). Through this contract, Leidos will provide scalable solutions and resilient systems to the agency's mission accelerating better health outcomes for everyone. The company will provide ARPA-H with a full range of IT support, design, development, and implementation.

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 47,000 employees support vital missions for government and commercial customers. Headquartered in Reston, Virginia, Leidos reported annual revenues of approximately $14.4 billion for the fiscal year ended December 30, 2022. 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 30, 2022, 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:	Melissa Dueñas
	(571) 526-6850
	duenasml@leidos.com
	Alyssa Pettus
	(571) 526-6743
	alyssa.t.pettus@leidos.com
	Brandon VerVelde
	(571) 526-6257
	Brandon.p.vervelde@leidos.com

 

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SOURCE Leidos Holdings, Inc.

FAQ

What is the ticker symbol for Leidos?

The ticker symbol for Leidos is LDOS.

Who awarded the prime contract to Leidos?

The prime contract was awarded by ARPA-H, a part of the NIH.

What is the base period of performance for the contract?

The contract has a one-year base period of performance and two one-year options.

What type of support will Leidos provide to ARPA-H?

Leidos will provide ARPA-H with a full range of IT support, design, development, and implementation.

What is the mission of ARPA-H?

ARPA-H supports the development of high-impact transformative biomedical and health research.

Who is the president of Leidos health and civil sector?

Liz Porter is the president of Leidos health and civil sector.