Leidos secures $191 million Army mission software modernization contract

Rhea-AI Summary

Leidos (NYSE: LDOS) has secured a $191 million contract from the Army Contracting Command – Aberdeen Proving Ground for integrated lifecycle software and management solutions. The contract, supporting the U.S. Army Communications Electronics Command, has a five-year performance period with a six-month extension option.

The work involves providing cyber-hardened software and systems engineering, technical services, and software integration. Leidos will support over seven mission software systems, including the Advanced Field Artillery Tactical Data System (AFATDS), Joint Automated Deep Operations Coordination System (JADOCS), and AN/TPQ-53 Multi-Mission Radar.

Roy Stevens, Leidos National Security Sector President, emphasized the importance of software systems capable of incremental modernization to counter near-peer threats and support the Army's vision for 2030 and beyond.

Positive

• Secured a $191 million contract with the U.S. Army
• Five-year performance period with a six-month extension option
• Builds upon prior mission software development for the customer
• Supporting over seven critical mission software systems

Negative

• None.

Insights

Financial Analyst

The $191 million contract secured by Leidos represents a significant win for the company's defense sector business. This 5-year contract with a 6-month extension option provides a stable revenue stream, enhancing Leidos' financial outlook. The contract's focus on mission-critical software modernization aligns well with the company's core competencies, potentially leading to improved profit margins.

Investors should note that this contract strengthens Leidos' position in the competitive defense technology market. The company's ability to secure large, long-term contracts like this one demonstrates its strong market position and could positively impact its stock performance. However, it's important to consider that the defense sector can be subject to budget fluctuations and political factors, which could affect future contract opportunities.

Tech Expert

Leidos' commitment to developing cyber-hardened software and systems engineering for the U.S. Army is noteworthy. The focus on DevSecOps practices for incremental modernization is important in today's rapidly evolving threat landscape. This approach allows for more agile and secure software development, which is essential for military applications.

The contract's scope, covering over seven mission software systems including AFATDS and JADOCS, highlights the complexity and breadth of Leidos' technical capabilities. The integration of third-party applications and upgrading of fires systems demonstrates Leidos' role in shaping the Army's technological future. This positions Leidos as a key player in the ongoing digital transformation of military operations, potentially opening doors for future contracts and technological advancements.

RESTON, Va., Aug. 13, 2024 /PRNewswire/ -- Leidos (NYSE: LDOS), a Fortune 500® innovation leader, was recently awarded a $191 million contract by the Army Contracting Command – Aberdeen Proving Ground for integrated lifecycle software and management solutions in support of the U.S. Army Communications Electronics Command, Software Engineering Center, C3T Directorate, Fires Division.

The contract covers a five-year performance period, with a six-month extension option. The safety-critical work Leidos will perform builds upon its prior mission software development for this customer, including by providing cyber-hardened software and systems engineering, technical services and software integration.

"For the U.S. Army to deliver precise, longer-range fires to counter continuous innovation from near-peer threats, they need software systems capable of incremental modernization," said Roy Stevens, Leidos National Security Sector President. "Applying our expertise in DevSecOps, we will sustain and upgrade fires systems and integrate third-party applications supporting the vision for the Army of 2030 and beyond."

More than seven mission software systems will be supported, including the Advanced Field Artillery Tactical Data System (AFATDS), Joint Automated Deep Operations Coordination System (JADOCS), and AN/TPQ-53 Multi-Mission Radar.

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 global workforce of 48,000 collaborates to create smarter technology solutions for customers in heavily regulated industries. 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.

Media Contacts:

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 the contract Leidos (LDOS) secured from the U.S. Army?

Leidos (LDOS) secured a $191 million contract from the Army Contracting Command – Aberdeen Proving Ground.

How long is the performance period for Leidos' (LDOS) Army contract?

The contract has a five-year performance period with a six-month extension option.

What specific software systems will Leidos (LDOS) support under this Army contract?

Leidos will support over seven mission software systems, including the Advanced Field Artillery Tactical Data System (AFATDS), Joint Automated Deep Operations Coordination System (JADOCS), and AN/TPQ-53 Multi-Mission Radar.

What type of services will Leidos (LDOS) provide under the Army contract?

Leidos will provide cyber-hardened software and systems engineering, technical services, and software integration for the U.S. Army.