Leidos Awarded New Contracts to Support Centers for Medicare and Medicaid Services

Rhea-AI Summary

Leidos (NYSE: LDOS) has secured a prime contract and three subcontracts from the Centers for Medicare and Medicaid Services (CMS) valued at approximately $102 million. The prime contract, which totals about $79 million, spans five years and will focus on IT operations and user services. Leidos aims to enhance CMS's mission-critical programs ensuring they remain agile and secure. Services include application migration, modernization, and support for hybrid cloud environments. This win aligns with Leidos’ strategy in IT modernization and could strengthen its market position.

Positive

• Awarded a prime contract worth approximately $79 million supporting CMS.
• Total contracts valued at about $102 million, enhancing revenue potential.
• Focus on critical services like IT operations and modernization, aligning with growth strategy.

Negative

• None.

RESTON, Va., March 1, 2023 /PRNewswire/ -- Leidos (NYSE: LDOS), a FORTUNE® 500 science and technology leader, was recently awarded a prime contract and three subcontracts by the Centers for Medicare and Medicaid Services (CMS) totaling approximately $102 million. The prime contract will support the Office of Information Technology (OIT) and the Infrastructure and User Services Group (IUSG). The firm-fixed-price, time and materials prime contract has a five-year period of performance, including an eight-month base period, and an estimated value of $79 million.

"We're ready to strengthen CMS' mission-critical programs and ensure their operations remain agile, secure and resilient," said Liz Porter, Leidos Health Group President. "Building off our expertise in IT modernization, Leidos will deliver key foundational services for CMS OIT and support their evolving needs."

Through this contract, Leidos will focus on managing operations, managed services, and application workloads. Leidos' support services will provide onboarding, migration planning, modernization support and maintenance for the current and future applications hosted in the enterprise's hybrid cloud environments.

Leidos was also awarded three subcontract positions to support CMS' Center for Clinical Standards and Quality (Quality Data Analytics Services Task Order), the Marketplace Information Technology Group within the Center for Consumer Information and Insurance Oversight (Marketplace Service Desk) as well as the Office of Information Technology (Enterprise Portal Services).

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. The company's 45,000 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
	Thomas Doheny
	(571) 474-4735
	dohenyt@leidos.com
	Lauren Reddington
	(202) 924-2226
	lauren.a.reddington@leidos.com

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SOURCE Leidos

FAQ

What is the value of Leidos' new contracts from CMS?

Leidos was awarded contracts totaling approximately $102 million.

How long is the prime contract awarded to Leidos?

The prime contract has a duration of five years.

What services will Leidos provide under the CMS contract?

Leidos will manage IT operations, application workloads, and provide modernization support.

What does the contract support for the Centers for Medicare and Medicaid Services?

The contract supports the Office of Information Technology and its mission-critical programs.