Leidos Completes Transition Milestone for NGEN-R SMIT

Rhea-AI Summary

Leidos (NYSE: LDOS) has successfully transitioned the Department of the Navy's enterprise IT networks, marking a key milestone in its $7.7 billion Service Management, Integration and Transport (SMIT) contract awarded in February 2020. As of August 1, 2021, Leidos took over IT operations for the Navy-Marine Corps Intranet and other critical networks serving over 650,000 professionals. This modernization aims to implement innovative technologies, enhancing network capabilities and user experience while maintaining high cybersecurity standards.

Positive

• Completion of the IT transition for the Navy-Marine Corps Intranet and other networks.
• Contract valued at $7.7 billion expected to enhance IT modernization and cybersecurity.
• Use of innovative technologies like AIOps to improve network operations.

Negative

• None.

RESTON, Va., Aug. 2, 2021 /PRNewswire/ -- Leidos (NYSE: LDOS), a FORTUNE^® 500 science and technology leader, has completed the transition for the Department of the Navy's enterprise information technology (IT) networks. The effort represents the foundation for the broader IT modernization planned under the Service Management, Integration and Transport (SMIT) contract that was initially awarded in February 2020 as part of the Next Generation Enterprise Network Recompete (NGEN-R).

On August 1, the Leidos team assumed responsibility for the end-to-end IT operations for the Navy-Marine Corps Intranet (NMCI) and the OCONUS Naval Enterprise Network (ONE-Net), as well as support for the Marine Corps Enterprise Network (MCEN). Combined, the three networks provide IT services for more than 650,000 uniformed and civilian professionals who use it daily in more than 1,500 locations across the U.S. and worldwide.

"Ensuring the Navy has an agile and responsive network is critical to national security, and we are proud to complete the transition successfully," said Dan Voce, senior vice president and Enterprise & Cyber Solutions operations manager for Leidos. "With this contract, the Navy is moving closer to enterprise networks that can more rapidly develop, test and deploy new mission-critical technologies while maintaining the highest levels of cybersecurity."

In February 2020, Leidos was awarded the NGEN-R SMIT contract, valued at $7.7 billion over 8 ½ years. After a series of contract protests, Leidos received the formal go-ahead to begin the transition in February 2021. To speed delivery to the Navy, Leidos negotiated with the Government Program Office an acceleration of the transition time from nine months to six months; with the final phase of the transition completed on August 1.

As part of the modernization efforts expected by the Navy, the Leidos team will focus on using innovative technologies, such as artificial intelligence operations (AIOps) and high-performance, risk-reduction virtual labs, to improve service. These advancements will support improved network operations and foster quicker development, testing and deployment of new IT solutions. Additionally, planned improvements such as new omni-channel support services using mobile, email, telephone, text and chat have the goal of enhancing the end-user experience and ultimately reduce time needed to resolve their issues.

"We are excited to have completed our transition and start improving operations," said Didier LeGoff, Leidos division manager for the SMIT contract. "SMIT's success will be measured by how well the Navy can leverage smart, scalable networks while addressing future warfighting challenges. Leidos is ready to help the Navy meet and exceed that standard."

About Leidos

Leidos is a Fortune 500® information 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 40,000 employees support vital missions for government and commercial customers. Headquartered in Reston, Virginia, Leidos reported annual revenues of approximately $12.30 billion for the fiscal year ended January 1, 2021. For more information, visit www.Leidos.com.

Statements in this announcement, other than historical data and information, constitute forward-looking statements that involve risks and uncertainties. A number of factors could cause our actual results, performance, achievements, or industry results to be very different from the results, performance, or achievements expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in the company's Annual Report on Form 10-K for the period ended January 1, 2021, and other such filings that Leidos makes with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.

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

Thomas Doheny
(571) 474-4735
Dohenyt@leidos.com 

Jalen Drummond 
(571) 992-5046
Jalen.Drummond@leidos.com 

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SOURCE Leidos

FAQ

What is the significance of Leidos completing the IT transition for the Navy?

Leidos' completion of the IT transition is crucial for enhancing the Navy's cybersecurity and operational agility, impacting national security.

How much is the SMIT contract awarded to Leidos worth?

The SMIT contract awarded to Leidos is valued at $7.7 billion over 8.5 years.

When did Leidos assume responsibility for Navy IT networks?

Leidos assumed responsibility for the Navy's IT networks on August 1, 2021.

How does the transition improve service for Navy personnel?

The transition introduces innovative technologies that enhance network operations and user support, improving service for over 650,000 Navy personnel.

What future enhancements are planned under the contract?

Future enhancements include the use of AIOps and omni-channel support services aimed at improving the end-user experience.